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AUCTUS MANAGEMENT GROUP LIMITED |
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Group Strategic Report, Report of the Directors and |
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Consolidated Financial Statements |
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for the Period 1 July 2019 to 30 September 2020 |
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AUCTUS MANAGEMENT GROUP LIMITED |
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Group Strategic Report, Report of the Directors and |
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Consolidated Financial Statements |
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for the Period 1 July 2019 to 30 September 2020 |
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AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
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Contents of the Consolidated Financial Statements |
for the Period 1 July 2019 to 30 September 2020 |
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Page |
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Company Information | 1 |
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Group Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 6 |
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Consolidated Income Statement | 8 |
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Consolidated Other Comprehensive Income | 9 |
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Consolidated Balance Sheet | 10 |
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Company Balance Sheet | 11 |
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Consolidated Statement of Changes in Equity | 12 |
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Company Statement of Changes in Equity | 13 |
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Consolidated Cash Flow Statement | 14 |
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Notes to the Consolidated Cash Flow Statement | 15 |
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Notes to the Consolidated Financial Statements | 17 |
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AUCTUS MANAGEMENT GROUP LIMITED |
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Company Information |
for the Period 1 July 2019 to 30 September 2020 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Statutory Auditor |
88 Hill Village Road |
Sutton Coldfield |
West Midlands |
B75 5BE |
AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
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Group Strategic Report |
for the Period 1 July 2019 to 30 September 2020 |
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The directors present their strategic report of the company and the group for the period 1 July 2019 to 30 September 2020. |
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REVIEW OF BUSINESS |
We aim to present a brief but comprehensive review of our group. Our review is consistent with the size and nature of our group. |
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The group's strategic aim over the past fifteen months has been to further establish and develop each of the ten operational divisions, strengthening the diversification of the solutions and services that we offer and expand the range of training and support provided to the wider infrastructure sector. We are focussed on the development of long-term partnerships via our core beliefs of respect, professionalism, inclusivity, partnerships, growth and pushing the boundaries. |
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Overall, turnover for this 15-month financial period grew by 1.3% (pro rata) to £23.18m (2019 - £18.30m). Whilst on paper this level of growth appears modest, the period included the impact of the first national lockdown due to the Co-Vid 19 pandemic. Revenue performance was reduced as a consequence for the 3-month period from April to June 2020, with the group achieving average revenue across this period of 70% when compared with pre-lockdown levels. |
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Despite the challenges faced towards the end of the financial period, the group delivered an Operating Profit of £0.47m (2019 - £0.39m) which supported an improved Net Asset position of £1.31m (2019 - £0.95m). |
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EBITDA generated for the period was £0.76m (2019 - £0.45m). |
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Whilst revenue growth across the period has continued, the group did suffer some minor gross margin erosion. This can be attributed to changes in our business and revenue mix across the group, in addition to labour cost increases due to wage inflation outstripping available price increases. |
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Despite the impact on trading performance as a result of the Co-Vid 19 pandemic, the group maintained a strong working capital position and was not required to access support via the government's Coronavirus Business Interruption Loan (CIBL) scheme. Government support during the period has been limited to accessing the Job Retention Scheme (JRS). |
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In April 2020, the rail sector entered the second year of the latest five-year control period (CP6). This control period includes a record level of budget spend across the sector of £42 billion and continues to bring opportunities with both our current and new customers. Beyond the group's traditional rail customer base, during the period new opportunities have been secured supporting large non-rail UK infrastructure projects. |
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Investment in our people remains core to the continued success of the group, from apprenticeship to board level, ensuring that our team is focused on delivering a safe, professional and customer focused service. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The ongoing Co-Vid 19 pandemic continues to create uncertainty across the UK economy, and whilst the group's activities are currently not affected, we await to see the impact on any future required periods of national lockdown. |
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Statutory and regulatory changes to worker engagement continue to be monitored for potential impact on the group and the wider UK labour market. |
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AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
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Group Strategic Report |
for the Period 1 July 2019 to 30 September 2020 |
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KEY PERFORMANCE INDICATORS |
The directors of the group monitor key performance indicators on an ongoing basis, particularly in relation to sales growth, margin performance, customer concentration and EBITDA. |
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ON BEHALF OF THE BOARD: |
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25 March 2021 |
AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
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Report of the Directors |
for the Period 1 July 2019 to 30 September 2020 |
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The directors present their report with the financial statements of the company and the group for the period 1 July 2019 to 30 September 2020. |
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During the year the company extended its accounting period by 3 months in line with other group companies to bring H1/H2 reporting end dates in line with major customers. |
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PRINCIPAL ACTIVITY |
The principal activity of the group in the period under review was that of the provision of labour, civil engineering, support solutions and training to the rail industry and wider UK infrastructure sector. |
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DIVIDENDS |
No dividends will be distributed for the period ended 30 September 2020. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2019 to the date of this report. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
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Report of the Directors |
for the Period 1 July 2019 to 30 September 2020 |
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AUDITORS |
The auditors, Haslehursts Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
Auctus Management Group Limited |
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Opinion |
We have audited the financial statements of Auctus Management Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 30 September 2020 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2020 and of the group's profit for the period then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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. |
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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 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. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Auctus Management Group Limited |
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Matters on which we are required to report by exception |
In the light of the 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 Group Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | 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. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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In preparing the financial statements, the 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. |
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Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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Statutory Auditor |
88 Hill Village Road |
Sutton Coldfield |
West Midlands |
B75 5BE |
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AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
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Consolidated Income Statement |
for the Period 1 July 2019 to 30 September 2020 |
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Period |
1/7/19 |
to | Year Ended |
30/9/20 | 30/6/19 |
Notes | £ | £ |
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TURNOVER | 23,179,650 | 18,297,914 |
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Cost of sales | (17,515,048 | ) | (13,427,396 | ) |
GROSS PROFIT | 5,664,602 | 4,870,518 |
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Administrative expenses | (5,587,490 | ) | (4,485,699 | ) |
77,112 | 384,819 |
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Other operating income | 393,879 | 1,250 |
OPERATING PROFIT | 5 | 470,991 | 386,069 |
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Interest payable and similar expenses | 6 | (22,216 | ) | (24,864 | ) |
PROFIT BEFORE TAXATION | 448,775 | 361,205 |
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Tax on profit | 7 | (92,669 | ) | (77,920 | ) |
PROFIT FOR THE FINANCIAL PERIOD |
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Profit attributable to: |
Owners of the parent | 356,106 | 283,285 |
AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
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Consolidated Other Comprehensive Income |
for the Period 1 July 2019 to 30 September 2020 |
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Period |
1/7/19 |
to | Year Ended |
30/9/20 | 30/6/19 |
Notes | £ | £ |
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PROFIT FOR THE PERIOD | 356,106 | 283,285 |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD |
356,106 |
283,285 |
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Total comprehensive income attributable to: |
Owners of the parent | 356,106 | 283,285 |
AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
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Consolidated Balance Sheet |
30 September 2020 |
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2020 | 2019 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 33,844 | 66,667 |
Tangible assets | 10 | 395,471 | 383,554 |
Investments | 11 | - | - |
429,315 | 450,221 |
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CURRENT ASSETS |
Stocks | 12 | 143,771 | 69,647 |
Debtors | 13 | 4,082,694 | 4,201,653 |
Cash at bank and in hand | 889,974 | 701,548 |
5,116,439 | 4,972,848 |
CREDITORS |
Amounts falling due within one year | 14 | (3,956,951 | ) | (4,079,143 | ) |
NET CURRENT ASSETS | 1,159,488 | 893,705 |
TOTAL ASSETS LESS CURRENT
LIABILITIES |
1,588,803 |
1,343,926 |
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CREDITORS |
Amounts falling due after more than one
year |
15 |
(206,452 |
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(317,681 |
) |
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PROVISIONS FOR LIABILITIES | 19 | (72,434 | ) | (72,434 | ) |
NET ASSETS | 1,309,917 | 953,811 |
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CAPITAL AND RESERVES |
Called up share capital | 20 | 644 | 644 |
Share premium | 21 | 187,692 | 187,692 |
Capital redemption reserve | 21 | 41 | 41 |
Retained earnings | 21 | 1,121,540 | 765,434 |
SHAREHOLDERS' FUNDS | 1,309,917 | 953,811 |
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The financial statements were approved by the Board of Directors and authorised for issue on 25 March 2021 and were signed on its behalf by: |
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R Toy - Director |
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AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
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Company Balance Sheet |
30 September 2020 |
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2020 | 2019 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
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Tangible assets | 10 |
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Investments | 11 |
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CURRENT ASSETS |
Stocks | 12 |
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Debtors | 13 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 14 | ( |
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NET CURRENT LIABILITIES | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
15 |
( |
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( |
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PROVISIONS FOR LIABILITIES | 19 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 20 |
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Share premium |
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Capital redemption reserve |
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Retained earnings |
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SHAREHOLDERS' FUNDS |
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Company's profit for the financial year | 2,908 | 9,707 |
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The financial statements were approved by the Board of Directors and authorised for issue on
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AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
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Consolidated Statement of Changes in Equity |
for the Period 1 July 2019 to 30 September 2020 |
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Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
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Balance at 1 July 2018 | 644 | 482,149 | 187,692 | 41 | 670,526 |
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Changes in equity |
Total comprehensive income | - | 283,285 | - | - | 283,285 |
Balance at 30 June 2019 | 644 | 765,434 | 187,692 | 41 | 953,811 |
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Changes in equity |
Total comprehensive income | - | 356,106 | - | - | 356,106 |
Balance at 30 September 2020 | 644 | 1,121,540 | 187,692 | 41 | 1,309,917 |
AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
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Company Statement of Changes in Equity |
for the Period 1 July 2019 to 30 September 2020 |
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Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
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Balance at 1 July 2018 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 30 June 2019 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 30 September 2020 |
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AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
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Consolidated Cash Flow Statement |
for the Period 1 July 2019 to 30 September 2020 |
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Period |
1/7/19 |
to | Year Ended |
30/9/20 | 30/6/19 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 547,472 | 864,045 |
Interest paid | (22,216 | ) | (24,864 | ) |
Tax paid | (46,067 | ) | (74,466 | ) |
Net cash from operating activities | 479,189 | 764,715 |
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Cash flows from investing activities |
Purchase of intangible fixed assets | (4,752 | ) | - |
Purchase of tangible fixed assets | (233,293 | ) | (328,683 | ) |
Sale of tangible fixed assets | 76,169 | 174,843 |
Net cash from investing activities | (161,876 | ) | (153,840 | ) |
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Cash flows from financing activities |
Loan repayments in year | (117,600 | ) | (120,397 | ) |
Capital repayments in year | (11,287 | ) | - |
Net cash from financing activities | (128,887 | ) | (120,397 | ) |
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Increase in cash and cash equivalents | 188,426 | 490,478 |
Cash and cash equivalents at
beginning of period |
2 |
701,548 |
211,070 |
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Cash and cash equivalents at end of
period |
2 |
889,974 |
701,548 |
AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
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Notes to the Consolidated Cash Flow Statement |
for the Period 1 July 2019 to 30 September 2020 |
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1. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
Period |
1/7/19 |
to | Year Ended |
30/9/20 | 30/6/19 |
£ | £ |
Profit before taxation | 448,775 | 361,205 |
Depreciation charges | 290,984 | 179,622 |
Profit on disposal of fixed assets | (69,502 | ) | (169,008 | ) |
Government grant income received | 381,941 | - |
Government grants | (393,879 | ) | - |
Finance costs | 22,216 | 24,864 |
680,535 | 396,683 |
Increase in stocks | (74,124 | ) | (13,422 | ) |
Decrease/(increase) in trade and other debtors | 130,897 | (265,847 | ) |
(Decrease)/increase in trade and other creditors | (189,836 | ) | 746,631 |
Cash generated from operations | 547,472 | 864,045 |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
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Period ended 30 September 2020 |
30/9/20 | 1/7/19 |
£ | £ |
Cash and cash equivalents | 889,974 | 701,548 |
Year ended 30 June 2019 |
30/6/19 | 1/7/18 |
£ | £ |
Cash and cash equivalents | 701,548 | 211,070 |
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AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
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Notes to the Consolidated Cash Flow Statement |
for the Period 1 July 2019 to 30 September 2020 |
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3. | ANALYSIS OF CHANGES IN NET FUNDS |
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Other |
non-cash |
At 1/7/19 | Cash flow | changes | At 30/9/20 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 701,548 | 188,426 | 889,974 |
701,548 | 188,426 | 889,974 |
Debt |
Finance leases | - | 11,287 | - | (27,413 | ) |
Debts falling due |
within 1 year | (115,000 | ) | - | - | (115,000 | ) |
Debts falling due |
after 1 year | (317,681 | ) | 117,600 | - | (200,081 | ) |
(432,681 | ) | 128,887 | - | (342,494 | ) |
Total | 268,867 | 317,313 | - | 547,480 |
AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
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Notes to the Consolidated Financial Statements |
for the Period 1 July 2019 to 30 September 2020 |
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1. | STATUTORY INFORMATION |
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Auctus Management Group Limited is a
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2. | STATEMENT OF COMPLIANCE |
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3. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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Tangible fixed assets |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Motor vehicles | - |
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Computer equipment | - |
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Government grants |
Government grants have been recognised under the accruals model. Government grants relating to revenue expenditure are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
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Notes to the Consolidated Financial Statements - continued |
for the Period 1 July 2019 to 30 September 2020 |
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3. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
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4. | EMPLOYEES AND DIRECTORS |
Period |
1/7/19 |
to | Year Ended |
30/9/20 | 30/6/19 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the period was as follows: |
Period |
1/7/19 |
to | Year Ended |
30/9/20 | 30/6/19 |
|
Direct | 44 | 39 |
Administration | 64 | 54 |
Directors | 3 | 3 |
|
|
|
Period |
1/7/19 |
to | Year Ended |
30/9/20 | 30/6/19 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
|
Notes to the Consolidated Financial Statements - continued |
for the Period 1 July 2019 to 30 September 2020 |
|
|
4. | EMPLOYEES AND DIRECTORS - continued |
|
Information regarding the highest paid director is as follows: |
Period |
1/7/19 |
to | Year Ended |
30/9/20 | 30/6/19 |
£ | £ |
Emoluments etc |
|
|
Pension contributions to money purchase schemes |
|
|
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
Period |
1/7/19 |
to | Year Ended |
30/9/20 | 30/6/19 |
£ | £ |
Other operating leases |
|
|
Depreciation - owned assets |
|
|
Profit on disposal of fixed assets | ( |
) | ( |
) |
Goodwill amortisation |
|
|
Patents and licences amortisation |
|
|
Auditors' remuneration |
|
|
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1/7/19 |
to | Year Ended |
30/9/20 | 30/6/19 |
£ | £ |
Bank loan interest |
|
|
|
7. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
Period |
1/7/19 |
to | Year Ended |
30/9/20 | 30/6/19 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax |
|
|
Tax on profit |
|
|
|
UK corporation tax has been charged at 19% . |
AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
|
Notes to the Consolidated Financial Statements - continued |
for the Period 1 July 2019 to 30 September 2020 |
|
|
7. | TAXATION - continued |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
|
Period |
1/7/19 |
to | Year Ended |
30/9/20 | 30/6/19 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
|
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances |
|
- |
Deferred tax charge | - | 28,764 |
Total tax charge | 92,669 | 77,920 |
|
8. | INDIVIDUAL INCOME STATEMENT |
|
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
|
|
9. | INTANGIBLE FIXED ASSETS |
|
Group |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 July 2019 | 100,000 | - | 100,000 |
Additions | - | 4,752 | 4,752 |
At 30 September 2020 | 100,000 | 4,752 | 104,752 |
AMORTISATION |
At 1 July 2019 | 33,333 | - | 33,333 |
Amortisation for period | 35,727 | 1,848 | 37,575 |
At 30 September 2020 | 69,060 | 1,848 | 70,908 |
NET BOOK VALUE |
At 30 September 2020 | 30,940 | 2,904 | 33,844 |
At 30 June 2019 | 66,667 | - | 66,667 |
AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
|
Notes to the Consolidated Financial Statements - continued |
for the Period 1 July 2019 to 30 September 2020 |
|
|
10. | TANGIBLE FIXED ASSETS |
|
Group |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 July 2019 | 37,815 | 1,321 | 567,091 |
Additions | 3,437 | - | 218,564 |
Disposals | - | - | (77,155 | ) |
At 30 September 2020 | 41,252 | 1,321 | 708,500 |
DEPRECIATION |
At 1 July 2019 | 1,387 | 1,321 | 275,944 |
Charge for period | 5,447 | - | 208,435 |
Eliminated on disposal | - | - | (70,488 | ) |
At 30 September 2020 | 6,834 | 1,321 | 413,891 |
NET BOOK VALUE |
At 30 September 2020 | 34,418 | - | 294,609 |
At 30 June 2019 | 36,428 | - | 291,147 |
|
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 July 2019 | 17,250 | 136,544 | 760,021 |
Additions | 4,820 | 45,172 | 271,993 |
Disposals | - | (8,449 | ) | (85,604 | ) |
At 30 September 2020 | 22,070 | 173,267 | 946,410 |
DEPRECIATION |
At 1 July 2019 | 15,092 | 82,723 | 376,467 |
Charge for period | 3,320 | 36,207 | 253,409 |
Eliminated on disposal | - | (8,449 | ) | (78,937 | ) |
At 30 September 2020 | 18,412 | 110,481 | 550,939 |
NET BOOK VALUE |
At 30 September 2020 | 3,658 | 62,786 | 395,471 |
At 30 June 2019 | 2,158 | 53,821 | 383,554 |
AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
|
Notes to the Consolidated Financial Statements - continued |
for the Period 1 July 2019 to 30 September 2020 |
|
|
10. | TANGIBLE FIXED ASSETS - continued |
|
Company |
Improvements |
to | Motor | Computer |
property | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 July 2019 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
|
|
( |
) | ( |
) |
At 30 September 2020 |
|
|
|
|
DEPRECIATION |
At 1 July 2019 |
|
|
|
|
Charge for period |
|
|
|
|
Eliminated on disposal |
|
|
( |
) | ( |
) |
At 30 September 2020 |
|
|
|
|
NET BOOK VALUE |
At 30 September 2020 |
|
|
|
|
At 30 June 2019 |
|
|
|
|
|
11. | FIXED ASSET INVESTMENTS |
|
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2019 |
and 30 September 2020 |
|
NET BOOK VALUE |
At 30 September 2020 |
|
At 30 June 2019 |
|
|
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
|
Subsidiaries |
|
|
Registered office: Tech Block Gee Business Centre, Holborn Hill, Aston, Birmingham, England, B7 5JR |
Nature of business:
|
% |
Class of shares: | holding |
|
|
AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
|
Notes to the Consolidated Financial Statements - continued |
for the Period 1 July 2019 to 30 September 2020 |
|
|
11. | FIXED ASSET INVESTMENTS - continued |
|
|
Registered office: Tech Block Gee Business Centre, Holborn Hill, Aston, Birmingham, England, B7 5JR |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
|
Registered office: Tech Block Gee Business Centre, Holborn Hill, Aston, Birmingham, England, B7 5JR |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
|
Registered office: Tech Block Gee Business Centre, Holborn Hill, Aston, Birmingham, England, B7 5JR |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
|
12. | STOCKS |
|
Group | Company |
2020 | 2019 | 2020 | 2019 |
£ | £ | £ | £ |
Stocks | 143,771 | 69,647 |
|
|
|
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
|
Group | Company |
2020 | 2019 | 2020 | 2019 |
£ | £ | £ | £ |
Trade debtors | 3,035,255 | 3,186,315 |
|
|
Bad debt provision | (6,097 | ) | - | - | - |
Amounts owed by group undertakings | - | - |
|
|
Other debtors | 79,170 | 117,251 |
|
|
Directors' loan accounts | 162,737 | 162,737 | 162,737 | 162,737 |
Prepayments | 811,629 | 735,350 |
|
|
4,082,694 | 4,201,653 |
|
|
AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
|
Notes to the Consolidated Financial Statements - continued |
for the Period 1 July 2019 to 30 September 2020 |
|
|
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
|
Group | Company |
2020 | 2019 | 2020 | 2019 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 115,000 | 115,000 |
|
|
Hire purchase contracts (see note 17) | 21,042 | - |
|
|
Trade creditors | 1,012,142 | 869,452 |
|
|
Amounts owed to group undertakings | - | - |
|
|
Corporation tax | 92,669 | 46,067 |
|
|
Social security and other taxes | 205,925 | 206,970 |
|
|
VAT | 1,258,394 | 358,770 | 1,256,871 | 358,770 |
Other creditors | 688,717 | 2,182,461 |
|
|
Accrued expenses | 563,062 | 300,423 |
|
|
3,956,951 | 4,079,143 |
|
|
|
15. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
|
Group | Company |
2020 | 2019 | 2020 | 2019 |
£ | £ | £ | £ |
Bank loans (see note 16) | 200,081 | 317,681 |
|
|
Hire purchase contracts (see note 17) | 6,371 | - |
|
|
206,452 | 317,681 |
|
|
|
The loan is secured by a debenture over the assets of the company. The repayment date is March 2023 and has an interest rate of 2.75% over base. |
|
16. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
Group | Company |
2020 | 2019 | 2020 | 2019 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 115,000 | 115,000 |
|
|
Amounts falling due between one and | two years: |
Bank loan 2 - 5 years | 200,081 | 317,681 | 200,081 | 317,681 |
AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
|
Notes to the Consolidated Financial Statements - continued |
for the Period 1 July 2019 to 30 September 2020 |
|
|
17. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Group |
Hire purchase contracts |
2020 | 2019 |
£ | £ |
Net obligations repayable: |
Within one year | 21,042 | - |
Between one and five years | 6,371 | - |
27,413 | - |
|
Group |
Non-cancellable | operating leases |
2020 | 2019 |
£ | £ |
Within one year | 207,112 | 135,243 |
Between one and five years | 510,687 | 361,307 |
In more than five years | 480,578 | 480,578 |
1,198,377 | 977,128 |
|
Company |
Non-cancellable | operating leases |
2020 | 2019 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
In more than five years |
|
|
|
|
|
18. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
Group | Company |
2020 | 2019 | 2020 | 2019 |
£ | £ | £ | £ |
Bank loans | 315,081 | 432,681 |
|
|
Invoice discounting facility | 600,263 | 2,054,037 | - | - |
915,344 | 2,486,718 |
|
|
|
The bank loan is secured on the assets of the company. The invoice discounting facility is secured on the trade debtors. In addition, personal guarantees totalling £100,000 have been given by the directors in connection with the invoice discounting facility. |
AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
|
Notes to the Consolidated Financial Statements - continued |
for the Period 1 July 2019 to 30 September 2020 |
|
|
19. | PROVISIONS FOR LIABILITIES |
|
Group | Company |
2020 | 2019 | 2020 | 2019 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 72,434 | 72,434 | 17,116 | 17,116 |
|
Group |
Deferred |
tax |
£ |
Balance at 1 July 2019 | 72,434 |
Balance at 30 September 2020 | 72,434 |
|
Company |
Deferred |
tax |
£ |
Balance at 1 July 2019 |
|
Balance at 30 September 2020 |
|
|
20. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
|
Ordinary | 0.01 | 644 | 644 |
|
21. | RESERVES |
|
Group |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
|
At 1 July 2019 | 765,434 | 187,692 | 41 | 953,167 |
Profit for the period | 356,106 | 356,106 |
At 30 September 2020 | 1,121,540 | 187,692 | 41 | 1,309,273 |
AUCTUS MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 07994296) |
|
Notes to the Consolidated Financial Statements - continued |
for the Period 1 July 2019 to 30 September 2020 |
|
|
21. | RESERVES - continued |
|
Company |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
|
At 1 July 2019 |
|
|
|
239,897 |
Profit for the period |
|
|
At 30 September 2020 |
|
|
|
242,805 |
|
|
22. | CONTINGENT LIABILITIES |
|
Cross guarantees exist between the company and RSS Infrastructure Limited under which each company has guaranteed certain debts of the other. |
|
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
|
The following advances and credits to directors subsisted during the period ended 30 September 2020 and the year ended 30 June 2019: |
|
2020 | 2019 |
£ | £ |
S Harrison |
Balance outstanding at start of period | 85,243 | 85,243 |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | 85,243 | 85,243 |
|
R Toy |
Balance outstanding at start of period | 77,494 | 77,494 |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | 77,494 | 77,494 |
|
24. | RELATED PARTY DISCLOSURES |
|
Key management personnel |
|
The company has identified key management personnel as the directors of the company, and their remunerations are detailed on note 4 of these financial statements. |
|
25. | ULTIMATE CONTROLLING PARTY |
|
There is no single controlling party. |