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 |
|
Consolidated Profit and Loss Account |
|
Consolidated Balance Sheet |
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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 Hindmarch |
Registered office |
|
Bankers |
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Auditors |
|
Commercial Corporate Services Limited
Directors' Report for the Year Ended 30 June 2023
The directors present their report and the for the year ended 30 June 2023.
Directors of the company
The directors who held office during the year were as follows:
Section 172 statement
The Directors believe that they have effectively implemented their duties under section 172 of the Companies Act 2006. The company has considered the long-term strategy of the business in the Strategic Report and consider that this strategy will continue to deliver long term success to the business and it’s stakeholders.
The company is committed to maintaining an excellent reputation and strives to achieve high standards. We are highly selective about which suppliers are used to deliver best value while maintaining an awareness of the environmental impact of the work that they do and strive to reduce their carbon footprint.
The Directors recognise the importance of wider stakeholders in delivering their strategy and achieving sustainability within the business. The main stakeholders in the company are considered to be the employees, suppliers and customers.
In ensuring that all our stakeholders are considered as part of every decision process we believe we act fairly between all members of the company.
Streamlined Energy and Carbon Reporting
Commercial are committed to maintaining a reputation for excellence and we continue to strive towards achieving the highest possible ethical and environmental standards. Since 2006, we have been reporting on our carbon footprint across all our company sites, which now includes our offices in London and Leeds, as well as our Cheltenham headquarters.
Commercial has been a Carbon Neutral company since 2006 and has committed to being Net-Zero by 2028. This commitment is in line with the Science Based Targets initiative (SBTi) and the aim to limit global warming to 1.5 degrees Celsius. We offset our total emissions, including Scope 3 emissions, through the purchase of offset credits. We exclusively support carbon projects that are independently verified to the highest standard.
Each year, our carbon emissions data is independently audited and verified by a third party, The Planet Mark. In addition, all of Commercial’s environmental practices and procedures are subject to an annual independent assurance review with British Standards Institution (ISO14001). We benchmark against our Net-Zero baseline year, 2018, alongside our previous year’s emissions. Our energy use and emissions data for the reporting period are as follows:
Financial period |
Base year: February 2018 to January 2019 |
Previous year: July 2021 to June 2022 |
Current year: July 2022 to June 2023 |
||
Turnover (£) |
65,480,228 |
68,853,282 |
80,953,933 |
||
Carbon intensity (tCO2e/£m turnover) |
8.66 |
4.87 |
3.87 |
||
Carbon Emissions (tCO2e) |
567.2 |
335.2 |
313.2 |
||
Scope 1 (fuel combustion and operation of facilities) |
441.3 |
241.7 |
220.8 |
||
Scope 2 (location based purchases energy) |
87.2 |
70.4 |
73.7 |
||
Scope 3 (fuel combustion grey fleet) |
38.7 |
23.14 |
18.7 |
||
Total Energy consumption (kWh) |
2,133,933 |
1,380,337 |
1,282,374 |
Commercial Corporate Services Limited
Directors' Report for the Year Ended 30 June 2023
Commercial have calculated all emissions associated with our carbon footprint in tonnes of carbon dioxide equivalent (tCO2e) across the 3 scopes. We use the Greenhouse Gas Protocol Corporate Standard because of its wide and reputable reporting standards. Commercial have calculated all kWh data using the relevant UK Government Greenhouse Gas (GHG) Conversion Factors for Company Reporting by the Department for Business, Energy & Industrial Standard and Department for Environment Food & Rural Affairs (2023) to understand our energy use across business activities within the reporting year.
To help reduce our dependency on the carbon intensive grid, our London and Cheltenham offices have had 444 solar panels collectively installed since 2012. At Commercial, we only purchase electricity that is supplied through a verified renewable tariff, which has been standard practice since 2006.
Commercial operates a hybrid working model and encourages staff to utilise Microsoft Teams to help reduce business travel and commuting emissions. In addition, we offer salary sacrifice schemes that encourage staff to switch to more sustainable modes of transport, making the purchase of bicycles and electric cars more accessible.
Further to a commitment made in 2022, Commercial is now completely free from fossil fuel heating, with our on-premises oil tank in Cheltenham decommissioned in June 2023. This follows the successful decommissioning of our gas central heating system at our London office in 2021.
In addition, our London fleet of electric, zero-tailpipe emission, and Ultra Low Emission Zone-compliant vans are charged by points linked to our rooftop solar array. Thanks to the expertise of our Green Technologies team, this switch helps us to minimise our electricity consumption from the grid. And the latest addition to our fleet is a long-distance hybrid van that has been fitted with a rooftop solar array in order to increase the vans fuel economy and utilise the sun’s power. The solar panels power the van’s battery, tail-lift, and electronics allowing the overall fuel economy to improve. Our company fleet is now 49% electric and/or hybrid, marking another significant step in cutting our carbon footprint as we target becoming Net-Zero by 2028.
Our Scope 1 emissions were reduced by 8.6%, while Scope 2 increased by 4.7%. We acknowledge this slight increase, due to our efforts to switch over to an all-electric fleet, and we are confident this figure will drop in line with our continued commitments. Our total carbon intensity (tCO2e/£m) across all three scopes has decreased by 94% since 2006, the year our sustainability journey started.
At Commercial, we remain committed to engaging with customers, suppliers, and employees on sustainability topics. We are working with The Planet Mark to create a bespoke Scope 3 reporting platform, which we will deliver for our customers in the coming years. At a time when many are paying consultants to better understand their Scope 3, our aim is to be known for being a trusted supply chain partner, who is not only working to help companies achieve their goals, but more importantly helping the UK and world achieve its Net-Zero goals.
Early in 2023, we launched our Green Audit service, designed to show organisations practical and achievable ways they could rationalise energy usage, reduce their energy bills and cut carbon. We are now helping a number of organisations, including a number of blue-chip brands, to not only make significant savings but unlock the power-producing potential of their premises. As well as highlighting the potential of renewable energy production capabilities, a typical Green Audit delivers energy savings of around 8% to each client.
To find out more about Commercial’s sustainability journey; to view copies of our Social Impact Report and our Green Audit guide; and to learn about our Products with Purpose range, our green technologies offering and our B Corp-accredited social enterprise, Commercial Foundation, visit our website www.commercial.co.uk
Commercial Corporate Services Limited
Directors' Report for the Year Ended 30 June 2023
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 30 June 2023
The directors present their strategic report for the year ended 30 June 2023.
Principal activity
The principal activity of the group is that of a parent company. The principal activites of the group is the provision of office supplies, managed IT and print services.
Fair review of the business
The board of Commercial Corporate Services are pleased to present our accounts to 30 June 2023.
The directors are pleased with the strong sales performance of Commercial illustrated in these accounts. We have, again, seen sales growth and a continued strong Net Profit, which has been achieved from several account wins and from introducing new product ranges.
All our business areas have done well, and we have successfully moved into new markets such as Smart and Green Technology. Due to this success, we have accelerated our investments within these two areas with exceptional take up on products within this area such as Solar Panels and EV Charging points.
We continue to invest heavily in both our staff and systems to give the business the best possible platform to meet our ambitious growth plans.
We head into the new financial year in very good shape. We have a strong customer base, a range of new products and a strong management team with clearly defined operations and strategic objectives. This has culminated in two of our strongest months in the company’s history and we are excited about what we can achieve in 2024.
The directors consider the performance for the year and the financial position at the year-end to be strong.
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.
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.
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.
Policy and practice on the payment of creditors
The directors seek to maintain appropriate commercial relationships with its suppliers and seek to respect credit terms within these relationships at the Company and at all subsidiary companies.
Employee involvement
The directors are committed to a policy of recruitment and promotion on the basis of aptitude and ability without discrimination of any kind.
The flow of information to employees and their involvement in driving the business forward continued during the period, with regular employee briefings by the directors and other Group management addressing the state of the business and current challenges and opportunities.
Commercial Corporate Services Limited
Strategic Report for the Year Ended 30 June 2023
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 generated profits this financial period which has strengthened our cash position. The business manages its cash carefully and has significant banking facilities available to it that remain unused.
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 group and company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• | select suitable accounting policies and apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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 30 June 2023, 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 30 June 2023 and of the group's profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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. |
Commercial Corporate Services Limited
Independent Auditor's Report to the Members of Commercial Corporate Services Limited
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 7, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We considered the nature of the group’s industry and its control environment and reviewed the groups’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the group operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
Commercial Corporate Services Limited
Independent Auditor's Report to the Members of Commercial Corporate Services Limited
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
• |
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; |
• |
enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
• |
reading minutes of meetings of those charged with governance. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
Windsor House
Bayshill Road
GL50 3AT
Commercial Corporate Services Limited
Consolidated Profit and Loss Account for the Year Ended 30 June 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
- |
|
Interest payable and similar charges |
( |
( |
|
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
|
Minority interests |
|
|
|
|
|
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 30 June 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investment property |
|
|
|
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 |
|
|
|
Capital redemption reserve |
|
|
|
Other reserves |
|
|
|
Profit and loss account |
|
|
|
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 30 June 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Investment property |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Capital redemption reserve |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
The company made a profit after tax for the financial year of £1,245,362 (2022 - loss of £871,720).
Approved and authorised by the
Director
Commercial Corporate Services Limited
Consolidated Statement of Changes in Equity for the Year Ended 30 June 2023
Equity attributable to the parent company
Share capital |
Capital redemption reserve |
Merger reserve |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
|
At 1 July 2021 |
|
|
|
|
|
|
|
Profit for the period |
- |
- |
- |
|
|
|
|
At 30 June 2022 |
|
|
|
|
|
|
|
Share capital |
Capital redemption reserve |
Merger reserve |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
|
At 1 July 2022 |
|
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
|
Dividends |
- |
- |
- |
- |
- |
( |
( |
At 30 June 2023 |
|
|
|
|
|
- |
|
Commercial Corporate Services Limited
Statement of Changes in Equity for the Year Ended 30 June 2023
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 July 2021 |
|
|
|
|
Loss for the period |
- |
- |
( |
( |
At 30 June 2022 |
|
|
|
|
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 July 2022 |
|
|
|
|
Profit for the year |
- |
- |
|
|
At 30 June 2023 |
|
|
|
|
Commercial Corporate Services Limited
Consolidated Statement of Cash Flows for the Year Ended 30 June 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
- |
|
Profit from disposals of investments |
( |
- |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in stocks |
|
( |
|
Decrease/(increase) in trade debtors |
|
( |
|
(Decrease)/increase in trade creditors |
( |
|
|
Cash generated from operations |
|
( |
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
( |
|
Cash flows from investing activities |
|||
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of investment properties |
( |
( |
|
Cash balance to subsidiary |
( |
- |
|
Movement in capital account invested in limited liability partnership |
- |
|
|
Proceeds from disposal of investments in subsidiaries and associates |
|
- |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from other borrowing draw downs |
( |
|
|
Payments to finance lease creditors |
( |
( |
|
Net cash flows from financing activities |
( |
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 July |
|
|
|
Cash and cash equivalents at 30 June |
1,900,801 |
1,094,867 |
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 June 2023.
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.
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 profits and 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.
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
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 generated profits this financial period which has strengthened the cash position. The business manages its cash carefully and has significant banking facilities available to it that remain unused.
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.
Key sources of estimation uncertainty
No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.
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
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 income 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.
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, 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 vehicle |
33% straight line |
Fixture and fittings |
25% straight line |
Print technology |
10% or 20% straight line |
Other fixed assets |
25% or 50% straight line |
Investment property
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 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.
Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.
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 |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
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.
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 in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
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.
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.
Dividends
Dividend distributions to the group’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 30 June 2023
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.
Financial instruments
Classification
Recognition and measurement
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
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 30 June 2023
Revenue |
The analysis of the group's revenue for the year from continuing operations is as follows:
2023 |
2022 |
|
Stationery, print and other product sales |
|
|
Interiors |
|
|
Managed print services |
|
|
IT infrastructure managed services |
|
|
|
|
The analysis of the group's Turnover for the year by market is as follows:
2023 |
2022 |
|
UK |
|
|
Europe |
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2023 |
2022 |
|
Sub lease rental income |
|
|
Miscellaneous other operating income |
- |
|
|
|
Operating profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Foreign exchange losses/(gains) |
|
( |
Operating lease expense - property |
|
|
Operating lease expense - plant and machinery |
|
|
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Staff costs |
Group
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
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:
2023 |
2022 |
|
Administration and support |
|
|
Sales, marketing and distribution |
|
|
Distribution |
|
|
Other departments |
|
|
|
|
Company
The company incurred no staff costs and had no employees other than the directors.
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
682,300 |
745,951 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2023 |
2022 |
|
Received or were entitled to receive shares under long term incentive schemes |
|
|
In respect of the highest paid director:
2023 |
2022 |
|
Remuneration |
|
|
Auditors' remuneration |
2023 |
2022 |
|
Audit of these financial statements |
24,250 |
23,100 |
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
( |
171,283 |
237,520 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods |
11,341 |
9,687 |
Total deferred taxation |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
( |
( |
UK deferred tax expense/(credit) relating to changes in tax rates or laws |
|
( |
Increase in UK and foreign current tax from adjustment for prior periods |
|
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
|
|
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
2023 |
Asset |
Accelerated capital allowances |
|
Revalued property acquired in year |
( |
|
2022 |
Asset |
Accelerated capital allowances |
|
|
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Intangible assets |
Group
Goodwill |
Computer software |
Total |
|
Cost |
|||
At 1 July 2022 |
|
|
|
Additions |
- |
|
|
Disposals |
- |
( |
( |
At 30 June 2023 |
|
|
|
Amortisation |
|||
At 1 July 2022 |
|
|
|
Amortisation charge |
|
|
|
Amortisation eliminated on disposals |
- |
( |
( |
At 30 June 2023 |
|
|
|
Carrying amount |
|||
At 30 June 2023 |
|
|
|
At 30 June 2022 |
|
|
|
Tangible assets |
Group
Freehold land and buildings |
IT equipment, office equipment and furniture |
Motor vehicles |
Total |
|
Cost |
||||
At 1 July 2022 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
- |
( |
( |
( |
At 30 June 2023 |
|
|
|
|
Depreciation |
||||
At 1 July 2022 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
( |
( |
( |
At 30 June 2023 |
|
|
|
|
Carrying amount |
||||
At 30 June 2023 |
|
|
|
|
At 30 June 2022 |
|
|
|
|
Leased assets
Included within net book value of tangible fixed assets is £1,344,043 (2022 - £598,107) in respect of assets held under finance leases and similar hire purchases contracts. Depreciation for the year on these assets was £469,347 (2022 - £174,400).
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Investment properties |
Group and company
2023 |
|
At 1 July |
|
Additions |
|
At 30 June |
|
The property was acquired in the year and is stated at cost.
Investments |
Group
2023 |
2022 |
|
Investment in LLP |
|
|
Company
2023 |
2022 |
|
Investments in subsidiaries |
|
|
Investment in LLP |
|
|
|
|
Subsidiaries |
£ |
Cost |
|
At 1 July 2022 |
|
Impairment |
( |
At 30 June 2023 |
|
Interest in LLP |
£ |
Cost |
|
At 1 July 2022 |
|
Additions |
|
Movement in capital account in LLP partnership |
( |
At 30 June 2023 |
|
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
|||
Subsidiary undertakings |
||||
|
Commercial House, Old Station Drive, Cheltenham, Gloucestershire, GL53 0DL |
|
|
|
|
Commercial House, Old Station Drive, Cheltenham, Gloucestershire, GL53 0DL |
|
|
|
|
1 Aintree Road, Perivale, Greenford, Middlesex, UB6 7LA |
|
|
|
|
Commercial House, Old Station Drive, Cheltenham, Gloucestershire, GL53 0DL |
|
|
|
|
Commercial House, Old Station Drive, Cheltenham, Gloucestershire, GL53 0DL |
|
|
|
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 period ended 30 June 2023 it reported a profit of £6,865 (2022 - £4,697), and net amounts due to the members at that date was £585,050 (2022 - £578,185).
Disposal of subsidiary |
Stocks |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Raw materials and consumables |
|
|
- |
- |
Debtors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Trade debtors |
|
|
- |
- |
|
Amounts owed by related parties |
- |
- |
|
|
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
- |
- |
|
Deferred tax assets |
|
|
- |
- |
|
Total current trade and other debtors |
|
|
|
|
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Cash and cash equivalents |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
|
|
|
|
|
|
Creditors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
- |
- |
|
Social security and other taxes |
|
|
- |
- |
|
Other creditors |
|
|
|
|
|
Accrued expenses |
|
|
- |
- |
|
Corporation tax liability |
194,165 |
100,647 |
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
Loans and borrowings |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Current loans and borrowings |
||||
Hire purchase and finance leases |
|
|
- |
- |
Other borrowings |
|
|
|
|
|
|
|
|
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Non-current loans and borrowings |
||||
Hire purchase and finance leases |
|
|
- |
- |
The hire purchase and finance lease liabilities are secured over the assets that they relate to.
Other borrowings relate to an invoice factoring facility that is secured over the company's trade debtors.
Commercial Corporate Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
9,180.90 |
|
9,180.90 |
Obligations under operating leases |
Group
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
- |
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
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 (2022 - £62,000), which the directors consider to be a market value rent.
At the year end the following amounts were due from directors:
A Hindmarch £Nil (2022 - £7,182)
At the year end the group was owed £Nil (2022 - £1,703,611) by Journey Holdings Limited, a company in which A Hindmarch is a director.
At the year end the group was owed £524,054 (2022 - £523,609) 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.