Registration number:
for the
Year Ended
Commercial Corporate Services Limited
Contents
Company Information |
|
Directors' Report |
|
Strategic Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
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Consolidated Profit and Loss Account |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Commercial Corporate Services Limited
Company Information
Directors |
A Hindmarch A Adams
S D Hindmarch-Bye |
Registered office |
|
Bankers |
|
Auditors |
|
Commercial Corporate Services Limited
Directors' Report for the Year Ended 31 January 2020
The directors present their report and the for the year ended 31 January 2020.
Directors of the company
The directors who held office during the year were as follows:
Disclosure of information to the auditor
Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
The auditors have expressed their willingness to remain in office.
Approved by the
.........................................
Director
Commercial Corporate Services Limited
Strategic Report for the Year Ended 31 January 2020
The directors present their strategic report for the year ended 31 January 2020.
Fair review of the business
The board of Commercial Corporate Services are pleased to present our accounts to the 31 January 2020.
The business showed a good sales performance of £66,597,364, an increase of £1,117,136 on the previous year. The business won a number of new accounts during the year and is in a strong position for continued growth.
The business continues to invest in its people and infrastructure in order to facilitate its future growth and its sales target of £100,000,000. We have always operated profitably and show an operating profit of £472,122 for this financial year. This shows a decrease of £635,938 on the previous year, which is due to continued funding of our Charitable Foundation (£204,674), increased bonuses (over £500,000 at Management level) and a paper loss from our Subsidiaries companies of (£111,684) which we have divested from in 2020.
COVID-19 Update
As we write this report our business has had to adapt and respond to the ongoing COVID-19 pandemic. We have done this by diversifying our product range to support our customers in the provision of PPE. We also started two new divisions in Smart Technologies and Workwear both of which are doing well. Current results after 11 months of trading show an increase 9.2% in turnover which has strengthened our cashflows and balance sheet. We also secured £13.5million of funding which has not been used at the time of writing.
We have also won a number of new customers and with our financial stability we expect 2020 to be our strongest year to date with significant growth in both sales and profit.
Key performance indicators
Given the nature of the business, the group's directors are of the opinion that key performance indicators are important. The group uses a number of indicators to monitor and improve development, performance or the position of the business. Indicators are reviewed and altered to meet changes both in the internal and external environments. The directors do not consider the inclusion of an analysis using key performance indicators to be necessary to assist users of the financial statements in their understanding of the financial performance or position of the group.
Commercial Corporate Services Limited
Strategic Report for the Year Ended 31 January 2020
Principal risks and uncertainties
The management of the group and the execution of the group's strategy are subject to a number of risks. The key business risks and uncertainties affecting the group are considered to relate to competition from other providers of office supplies and IT services and the challenges arising as a result of the current economic climate.
Objectives and policies
The group does not actively use financial instruments as part of its financial risk management. It is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit control procedures. The nature of its financial instruments means that they are not subject to price or liquidity risk.
Going concern
In accordance with the Financial Reporting Council's 'Going Concern and Liquidity Risk: Guidance for the Directors of UK Companies 2009' the directors of all companies are now required to provide disclosures regarding the adoption of the going concern basis of accounting.
The group has been impacted by the COVID-19 pandemic and the directors have responded positively as noted above, as well as making use of the government furlough scheme, home working and conducting a full risk management assessment over all parts of the business.
As noted above in the business review, the directors also moved the focus of the business operations into new areas which both provided some security to the business and supported the UK response to the pandemic. This has resulted in increased revenues and a strong cash position at the date of sign off of these financial statements.
The directors therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.
Approved by the
.........................................
Director
Commercial Corporate Services Limited
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of 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 apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Commercial Corporate Services Limited
Independent Auditor's Report to the Members of Commercial Corporate Services Limited
Opinion
We have audited the financial statements of Commercial Corporate Services Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2020, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• |
give a true and fair view of the state of the group's and the parent company's affairs as at 31 January 2020 and of the group's profit for the year then ended; |
• |
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• |
have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
• |
the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
• |
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or the parent company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Commercial Corporate Services Limited
Independent Auditor's Report to the Members of Commercial Corporate Services Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• |
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• |
the parent company financial statements are not in agreement with the accounting records and returns; or |
• |
certain disclosures of directors’ remuneration specified by law are not made; or |
• |
we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 auditor's report.
Commercial Corporate Services Limited
Independent Auditor's Report to the Members of Commercial Corporate Services Limited
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
Windsor House
Bayshill Road
GL50 3AT
Commercial Corporate Services Limited
Consolidated Profit and Loss Account for the Year Ended 31 January 2020
Note |
2020 |
2019 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Interest payable and similar charges |
( |
( |
|
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
|
Minority interest |
110,255 |
26,171 |
|
Profit for the financial year attributable to members of the parent company |
387,072 |
703,822 |
The above results were derived from continuing operations.
The group has no other comprehensive income for the year.
Commercial Corporate Services Limited
(Registration number: 07531759)
Consolidated Balance Sheet as at 31 January 2020
Note |
2020 |
2019 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Merger reserve |
|
|
|
Retained earnings |
|
|
|
Equity attributable to owners of the company |
|
|
|
Minority interests |
( |
|
|
Total equity |
|
|
Approved and authorised by the
.........................................
Director
Commercial Corporate Services Limited
(Registration number: 07531759)
Balance Sheet as at 31 January 2020
Note |
2020 |
2019 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Retained earnings |
|
|
|
Total equity |
|
|
The company made a profit after tax for the financial year of £- (2019 - profit of £456,147).
Approved and authorised by the Board on 29 January 2021 and signed on its behalf by:
.........................................
A Hindmarch
Director
Commercial Corporate Services Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 January 2020
Equity attributable to the parent company
Share capital |
Merger reserve |
Retained earnings |
Total |
Non- controlling interests |
Total equity |
|
At 1 February 2018 |
|
|
|
|
|
|
Profit/(loss) for the year |
- |
- |
|
|
( |
|
Dividends |
- |
- |
( |
( |
- |
( |
Acquisition of non-controlling interest, decrease/ (increase) in equity |
- |
- |
- |
- |
( |
( |
At 31 January 2019 |
|
|
|
|
|
|
Share capital |
Merger reserve |
Retained earnings |
Total |
Non- controlling interests |
Total equity |
|
At 1 February 2019 |
|
|
|
|
|
|
Profit/(loss) for the year |
- |
- |
|
|
( |
|
At 31 January 2020 |
|
|
|
|
( |
|
Commercial Corporate Services Limited
Statement of Changes in Equity for the Year Ended 31 January 2020
Share capital |
Retained earnings |
Total |
|
At 1 February 2018 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 31 January 2019 |
|
|
|
Share capital |
Retained earnings |
Total |
|
At 1 February 2019 |
|
|
|
At 31 January 2020 |
|
|
|
Commercial Corporate Services Limited
Consolidated Statement of Cash Flows for the Year Ended 31 January 2020
Note |
2020 |
2019 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items: |
|||
Depreciation and amortisation |
|
|
|
(Profit)/loss on disposal of tangible fixed assets |
( |
|
|
Finance costs |
|
|
|
Corporation tax expense |
|
|
|
|
|
||
Working capital adjustments: |
|||
(Increase)/decrease in stock |
( |
|
|
(Increase)/decrease in debtors |
( |
|
|
Increase/(decrease) in creditors |
|
( |
|
Cash generated from operations |
|
|
|
Corporation taxes received/(paid) |
|
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Acquisitions of tangible fixed assets |
( |
( |
|
Proceeds from sale of tangible fixed assets |
|
|
|
Acquisition of intangible assets |
( |
( |
|
Movement in capital account invested in limited liability partnership |
|
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
(606,755) |
(41,153) |
|
Payments to finance lease creditors |
( |
( |
|
Dividends paid |
- |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 February |
( |
( |
|
Cash and cash equivalents at 31 January |
1,003,042 |
(2,026,005) |
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2020
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements 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.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 January 2020.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2020
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
In assessing whether the going concern basis is appropriate, the directors take into account all available information about the future, which is at least, but not limited to, 12 months from the date of signing these financial statements. The directors have considered the impacts of Covid-19 on the financial statements and the future of the business.
The group has been impacted by the COVID-19 pandemic and the directors have considered various scenarios in order to ensure that the business was protected.
Cash is being managed and the group has secured sufficient facilities to support the business over the coming year. The directors also moved the focus of the business operations into new areas which both provided some security to the business and supported the UK response to the pandemic.
The financial statements have therefore been prepared on the going concern basis, which the directors believe to be appropriate.
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 amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements and estimation uncertainty
No significant judgements have been made by management in preparing these financial statements. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Foreign currency transactions and balances
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2020
Tax
The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible fixed assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Short term leasehold property |
20% straight line |
Rental machines |
Over the lower of the rental agreement or 3 years |
Motor vehicles |
33% straight line |
Fixtures and fittings |
25% straight line |
Print technology |
10% or 20% straight line |
Other fixed assets |
25% or 50% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Intangible fixed assets
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
Over 5 years |
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2020
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtors.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out method.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Loans and borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2020
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2020
Financial instruments
Classification
Recognition and measurement
Financial assets and liabilities are only offset in the balance sheet when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Impairment
Non-financial assets:
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
Financial assets:
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2020
Turnover |
The analysis of the group's revenue for the year from continuing operations is as follows:
2020 |
2019 |
|
Stationery and print |
|
|
Interiors |
|
|
Managed print services |
|
|
IT infrastructure managed services |
10,741,496 |
10,455,318 |
|
|
The analysis of the group's revenue for the year by market is as follows:
2020 |
2019 |
|
UK |
|
|
Europe |
|
|
|
|
Operating profit |
Arrived at after charging / (crediting):
2020 |
2019 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Foreign exchange losses |
( |
( |
Operating leases |
|
|
(Profit)/loss on disposal of tangible fixed assets |
( |
|
Auditor's remuneration - the audit of the group's annual statutory accounts |
30,500 |
30,000 |
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2020
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2020 |
2019 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2020 |
2019 |
|
Administration |
|
|
Sales and account management |
|
|
Distribution |
|
|
Support services |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2020 |
2019 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
1,218,551 |
677,475 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2020 |
2019 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2020 |
2019 |
|
Remuneration |
|
|
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2020
Taxation |
Tax charged / (credited) in the income statement:
2020 |
2019 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
|
- |
Total corporation tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
( |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2019 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2020 |
2019 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit |
|
|
UK deferred tax expense relating to changes in tax rates |
( |
|
Other tax effects for reconciliation between accounting profit and tax expense |
|
|
Total tax charge |
|
|
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2020
Deferred tax
Group
Deferred tax assets and liabilities
2020 |
Asset |
Accelerated capital allowances |
|
2019 |
Asset |
Accelerated capital allowances |
|
Intangible fixed assets |
Group
Goodwill |
Computer software |
Total |
|
Cost |
|||
At 1 February 2019 |
|
|
|
Additions |
- |
|
|
Disposals |
( |
( |
( |
At 31 January 2020 |
|
|
|
Amortisation |
|||
At 1 February 2019 |
|
|
|
Amortisation charge |
|
|
|
Amortisation eliminated on disposals |
( |
( |
( |
At 31 January 2020 |
|
|
|
Carrying amount |
|||
At 31 January 2020 |
|
|
|
At 31 January 2019 |
|
|
|
Fully amortised goodwill has been disposed of as this has reached the end of it's useful life.
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2020
Tangible fixed assets |
Group
Land and buildings |
IT equipment |
Office furniture and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
|||||
At 1 February 2019 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
( |
( |
( |
( |
( |
At 31 January 2020 |
|
|
|
|
|
Depreciation |
|||||
At 1 February 2019 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
( |
( |
( |
( |
( |
At 31 January 2020 |
|
|
|
|
|
Carrying amount |
|||||
At 31 January 2020 |
|
|
|
|
|
At 31 January 2019 |
|
|
|
|
|
Included within the net book value of land and buildings above is £2,312,079 (2019 - £2,363,124) in respect of freehold land and buildings and £57,108 (2019 - £66,404) in respect of short leasehold land and buildings.
Leased assets
Included within the net book value of tangible fixed assets is £835,302 (2019 - £1,134,655) in respect of assets held under finance leases and similar hire purchase contracts. Depreciation for the year on these assets was £603,510 (2018 - £521,798).
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2020
Investments |
Group
Unlisted investments |
|
Cost and net book value |
|
At 1 February 2019 |
678,835 |
Movements in capital account of LLP investment |
(3,751) |
At 31 January 2020 |
675,084 |
Company
2020 |
2019 |
|
Shares in group undertakings |
|
|
Unlisted investments |
675,084 |
678,835 |
|
|
£ |
|
Cost |
|
At 1 February 2019 |
|
Impairment of investment |
( |
At 31 January 2020 |
|
Carrying amount |
|
At 31 January 2020 |
|
At 31 January 2019 |
|
The investment in In2Print Part of Commercial Limited was disposed of on 6 March 2020 for £nil. As such this investment has been written down to it's recoverable amount at 31 January 2020.
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2020
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Country of incorporation |
Holding |
Proportion of voting rights and shares held |
|
2020 |
2019 |
|||
Subsidiary undertakings |
||||
|
England |
Ordinary |
|
|
|
England |
Ordinary |
|
|
|
England |
Ordinary |
|
|
|
England |
Ordinary B |
|
|
|
England |
Ordinary |
|
|
|
England |
Ordinary |
|
|
|
England |
Ordinary |
|
|
* Indirect holding through In2Print Part of Commercial Group Limited which holds 51% in the ordinary share capital in The Print Giant Limited.
The company is a corporate partner in, but does not have control of, in Commercial Recruitment (2005) LLP, which trades as a staff agency. For the year ended 31 January 2020 it reported neither a profit nor a loss (2019 - neither a profit nor a loss), and net amounts due to members at that date was £1,000 (2019 - £1,000).
The company is a corporate partner in, but does not have control of, in Ledbury Projects LLP, which trades as a land and property development partnership. For the year ended 31 January 2020 it reported a profit of £2,377 (2019 - £426,627), and net amounts due to the members at that date was £578,260 (2019 - £609,400).
Stocks |
Group |
Company |
|||
2020 |
2019 |
2020 |
2019 |
|
Stocks for resale |
|
|
- |
- |
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2020
Debtors |
Group |
Company |
|||
2020 |
2019 |
2020 |
2019 |
|
Trade debtors |
|
|
- |
- |
Loans to related parties |
75 |
42,767 |
75 |
42,767 |
Other debtors |
|
|
|
|
Prepayments and accrued income |
|
|
- |
- |
Deferred tax assets |
|
|
- |
- |
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
2020 |
2019 |
2020 |
2019 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
|
|
|
|
|
|
|
Bank overdrafts |
( |
( |
- |
- |
Cash and cash equivalents in statement of cash flows |
1,003,042 |
(2,026,005) |
24,055 |
19,748 |
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2020
Creditors |
Group |
Company |
|||
2020 |
2019 |
2020 |
2019 |
|
Due within one year |
||||
Loans and borrowings |
|
|
- |
- |
Trade creditors |
|
|
- |
- |
Amounts owed to group undertakings |
- |
- |
|
|
Social security and other taxes |
|
|
- |
- |
Other creditors |
|
|
|
|
Accruals and deferred income |
|
|
- |
- |
Corporation tax liability |
162,891 |
17,947 |
- |
- |
|
|
|
|
|
Due after one year |
||||
Loans and borrowings |
|
|
- |
- |
Other non-current financial liabilities |
|
|
- |
- |
1,067,158 |
1,677,675 |
- |
- |
Loans and borrowings |
Group |
Company |
|||
2020 |
2019 |
2020 |
2019 |
|
Current loans and borrowings |
||||
Bank borrowings |
- |
|
- |
- |
Bank overdrafts |
|
|
- |
- |
Finance lease liabilities |
|
|
- |
- |
|
|
- |
- |
Group |
Company |
|||
2020 |
2019 |
2020 |
2019 |
|
Non-current loans and borrowings |
||||
Bank borrowings |
- |
|
- |
- |
Finance lease liabilities |
|
|
- |
- |
|
|
- |
- |
Security has been given by the group over the bank loan and overdraft.
The bank loan is denominated in £ with a nominal interest rate of 2.7% above base%, and the final instalment is due on 31 January 2023. The loan was fully repaid during the year (2019 - carrying amount of £606,755).
The finance lease liabilities are secured over the assets of they relate to.
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2020
Dividends |
2020 |
2019 |
|
Dividends paid |
- |
456,147 |
The dividends were payable to the directors.
Obligations under leases |
The total of future minimum lease payments is as follows:
2020 |
2019 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Pension and other schemes |
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to
£
Contributions totalling £36,642 (2018 - £14,422) were payable to the scheme at the year end and are included in creditors.
Share capital |
Allotted, called up and fully paid shares
2020 |
2019 |
|||
No. |
£ |
No. |
£ |
|
|
|
10,000.30 |
|
10,000.30 |
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 31 January 2020
Related party transactions |
Group
During the year the group rented premises from a pension scheme whose beneficiary is A Hindmarch, a director, for the sum of £62,000 (2019 - £62,000), which the directors consider to be a market value rent.
At the year end the following amounts were due from/(to) directors:
A Adams - £75 (2019 - £915)
A Hindmarch - £Nil (2019 (13,600))
S D Hindmarch Bye - £nil (2019 - 28,298)
At the year end the group was owed £1,716,046 (2019 - £210,000) by Journey Holdings Limited, a company in which A Hindmarch is a director.
At the year end the group was owed £364,390 (2019 - £nil) by Lane Britton and Jenkins Limited, a company in which A Hindmarch is a director.
At the year end the group was owed £517,841 (2019 - £503,420) by Property Solutions (Ledbury) Limited, a company in which A Hindmarch is a director.
These balances appear as other debtors in the financial statements.
Key management personnel are considered to be the directors of the company and key management personnel compensation is disclosed in note 6 to the financial statements.
Control |
The company has no single controlling entity.