ACCOUNTS - Final Accounts
ACCOUNTS - Final Accounts
|
Registered number:
FOR THE YEAR ENDED 30 SEPTEMBER 2022
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
COMPANY INFORMATION
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
CONTENTS
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
The directors present their strategic report for the year ended 30 September 2022.
The Company was incorporated in the prior year as part of the new group structure put in place for the acquisition of Pareto Facilities Management Limited, the only trading subsidiary of the Company.
Pareto Facilities Management Limited (hereafter "the Company") is a facilities services provider predominantly servicing high end commercial office space, museums and public attractions. The Company offers a broad range of facilities management services to its clients including mechanical and electrical maintenance, building and fabric maintenance, reception services, cleaning, security, catering and facilities project management. This is achieved via a combination of in-house and outsourced services. The business is based in the UK however, it has operations in a number of European Countries.
The company's performance was exceptionally strong in the financial year which is evidenced by the phenomenal growth in revenue. The trading subsidiary Pareto Facilities Management, which was acquired by the Group on 22 February 2021, achieved like-for-like revenue growth of 76% from £18.1m in 2021 to £31.9m in the year ended 30 September 2022. This growth was driven by the addition of 18 new contracts in the year as well as expansion in the existing customer contracts. One of the contracts awarded was for the delivery of services in Romania which adds to the geographical footprint of the business.
The growth in revenue enabled the business to continue to invest in human capital and this saw its staff numbers increase by 52 percent from 145 to 220. As well as securing new contracts in the year, the business invested in strengthening and widening its management team to accommodate continued growth.
Since the year end, Pareto has continued to expand by completing the acquisition of Support Maintenance Services Limited which provides the business with its own in house soft services division which will enable it to further enhance its inhouse service delivery capabilities. The company expects to maintain its continued growth trajectory which is underpinned by a strong order book and increasing sales pipeline.
Throughout 2022, business growth, ED&I and social value continued to play a key focus in Pareto’s evolution; resulting in 8 prestigious industry awards, two of which were awarded specifically for Pareto’s ED&I strategy and Kickstarter Scheme. This has been coupled with over 15 published articles in the main press relating to growth, ED&I and other social value initiatives. Increased activity in thought leadership has led to two senior Pareto managers joining the inaugural ED&I committee within the IWFM. Pareto management now make up 20% of the industries on the ED&I specialist interest group. Additionally, at the 2022 IWFM Annual Conference, Pareto was the only FM company to offer representation with a stand led by Pareto’s Associate Director supported by a marketing Kickstarter.
In January 2022, Pareto joined the government Kickstarter scheme. Partnering with Mary’s Charity and the DWP enabled Pareto to recruit 30 young people aged between 18-24, who were on Universal Credit. The 30 people from disadvantaged backgrounds consisted of 54% women, 8% trans, 12% neurodiverse, 58% ethnically diverse individuals. 10 of the 30 employees have since gone on to secure permanent employment with an average salary of £27k. During their time with Pareto, the recruits received continued support in preparing for future employment with computer equipment, vouchers, online training, site visits, 1:1 counselling sessions, CV writing support, professional headshots, and personal brand profile building.
The total value of the project was £250,000 which was sourced through government funding.
In June 2022, Pareto partnered with YuLife -Group life insurance health and wellbeing app that engages and rewards employees. This means all UK Pareto employees have Life assurance, 24/7 access to a private virtual doctor, 24/7 access to a private virtual mental health professional, a free will writing service and access vouchers rewarding activity. All in aid of improving mental and physical health. Activity captured via the YuLife app, also enables staff to convert their daily footstep count into good causes and sustainability initiatives.
Page 1
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
In July, Pareto was awarded a place on the NHS Total Facilities Management 2022 Framework-one of only 18 service providers that successfully made it on the framework. Later that month Pareto went on to further gain a place on the prestigious Crown Commercial Services £35 billion framework. Supported by Chairman Mark Rogerson MBE, Pareto FM are now entitled to bid on contracts on the framework worth up to £50 million. One of only a few SMEs to be awarded a place.
Following the Pareto rebrand in July, a strategic growth marketing plan was implemented to ensure campaigns and initiatives throughout the year showcased the following accomplishments for Pareto:
∙Pareto launched the ‘Step on Board’ programme which has seen 15 senior managers and senior clients trained to become active NEDs on charities.
∙During Black History Month in October, anti-racism training was offered to all employees to help raise awareness around our actions and biases. In addition, we launched a flexible working policy enabling all Pareto staff to donate blood at a blood donor centre near their place of work. This was coupled with our drive to raise awareness for the NHS Blood donor scheme and Sickle Cell Disease.
∙In July, as part of our commitment to help Pareto employees be happier, healthier, and higher performing at work, we invited all employees to participate in the SHAPE survey, the System for Health, Attendance, Productivity and Engagement.
∙Pareto launched a range of new and progressive policies including; Menopause, Maternity, Paternity, Bereavement and Transition policies. These policies all exceed the government statutory requirements to ensure we remain committed to creating an inclusive, diverse, and family friendly workplace.
∙In February, Pareto launched the Refugee Recruitment scheme; encouraging refugees entering the UK to apply for positions at Pareto. This included creating job adverts in over 10 different languages to encourage applications from a diverse workforce.
∙During June, Pareto’s Pride campaign promoted ‘allyship.’ Colleagues attended Reading and Malta Pride, one of only a small selection of FM businesses representing the industry.
∙Pareto has continued to grow its participation in the UK Apprenticeship Scheme. Three apprentices were recruited for a new client site which included a specific focus on diverse apprentices. Pareto continues to spend 100% of its apprenticeship levy.
∙Pareto has continued to develop its Mental Health First Aider (MHFA) scheme. Pareto has appointed 12 MHFAs directly in the business; a ratio of around 1:20 - 1 MHFA to every 20 employees.
∙Pareto is currently finalising a campaign to support Period Poverty, which will launch in connection with the signing of the Endometriosis Friendly Employer Pledge. This will see Pareto donate 50,000 sanitary towels to the UK public. In addition, we are working with a start-up business in Ethiopia to offer 500 reusable sanitary towel kits to our employees and wider business.
∙Each year, Pareto offer all colleagues the opportunity to take part in several charitable events- Three Peaks, Tough Mudder, London Marathon and a charity Skydive. In total over 100 people have participated in these events in the last 12 months.
Sustainability
In 2022, EcoVadis, the world’s most trusted business sustainability ratings firm, has scored Pareto in the top 7% of companies using the scheme. The SSIP SafeContractor Sustainability accreditation we achieved further showcases how Pareto is at the forefront of the FM sector in terms of ESG.
In September Pareto submitted their 2022/23 carbon reduction plan that was signed off by the UK government. This sets out plans to be carbon neutral within three years and carbon negative thereafter. To reach these reduction targets, Pareto is proactively changing its vehicle fleet to electric, launching a cycle to work scheme and are reducing its physical office infrastructure.
In 2022, Pareto offset its carbon emissions by providing funding to protect vital rainforest from deforestation in Papua New Guinea. Not only does this project reduce CO2 but reduces deforestation, creating alternative employment for local residents and protecting the bio-diversity of the island.
Page 2
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
Over the past year, our sustainability work has included planting 1000 trees and removing 52kg of plastic from the ocean. In November, we formalised our pledge moving forward, to plant a tree for every day we trade and remove 1kg of plastic from the ocean for each week of trading. Via the YuLife employee engagement app we introduced earlier in the year, colleagues are able to contribute their own points earned from wellbeing activities to generate funds for tree planting.
The end of 2022 sees Pareto launch its Give as You Earn (GAYE) charity donation scheme. This enables Pareto employees to donate directly from their gross salaries to environmental charities focused on tackling climate change.
The key business risks are set out below. Risks are carefully considered by the board and mitigated appropriately.
Market risk The principal risk is around the future of the workspace. The Covid-19 pandemic has forced organisations to consider the size, scope and location of their workspace moving forward. This may raise challenges with clients looking to reduce, change or move their workspace footprint. The Group is well placed to support clients in this challenge as our agile model enables us to adapt to client requirements in a timely manner. Indeed, the Group's agility as a comparative advantage over competitors resulted in a number of new contract wins during the pandemic, and the Group may well gain market share going forward from any disruption to the workplace. Loss of customer risk Notwithstandng Covid-19, the Group’s main risks and uncertainties are customer related, such as loss of a key customer. This is mitigated by delivering high quality services, typically on a multiple year service contract. Financial risk management Credit risk Credit risk is managed through appropriate credit checking of our customers and management of customer payments to ensure they are in line with contractual terms. Liquidity risk The Group seeks to manage risks to ensure sufficient liquidity is available to meet future needs and ensure loan repayments are made on time. The directors monitor cash flow on a regular basis to identify at an early stage any potential short-term funding issues. Currency risk The Group is exposed to foreign exchange risk in connection with its ongoing operating activities, which are transacted in British pounds and Euro’s. To help minimise foreign exchange risk, the Group operates bank accounts in these currencies.
One of the most important aspects of managing services and the business related to the cash position. The Company has comfortably managed its cash position in the year and enabled the payment of a dividend.
The other key indicators have been revenue which has been noted in the business review above and underlying EBITDA adjusted for exceptional items which had increased in the year from £1.4 to £2.7m. Sales Turnover has grown significantly at 76%. Importantly, EBITDA has also grown, reflecting the effective delivery of services to maintain profitability on existing contracts, as well as the impact of new business won, ensuring a successful year.
Page 3
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
This report was approved by the board and signed on its behalf.
Page 4
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
The directors present their report and the financial statements for the year ended 30 September 2022.
The loss for the year, after taxation, amounted to £831,430 (2021 - loss £487,556). There were no dividends recommended in the period.
The directors who served during the year were:
See the strategic report above for future developments.
On 24 January 2023 the Group have taken out a new loan for £1 million to acquire Support Maintenance Services Limited for an initial consideration of £1,724,000 plus other contingent consideration. The acquisition has created an in house soft services division within the Group.
The auditor, James Cowper Kreston Audit, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Page 5
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to 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.
Page 6
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALPHA GROUP TOPCO LIMITED
We have audited the financial statements of Alpha Group Topco Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2022, which comprise the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and Company Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Page 7
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALPHA GROUP TOPCO LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
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 Directors' report.
Page 8
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALPHA GROUP TOPCO LIMITED (CONTINUED)
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 Group financial statements.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims;
∙Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
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
Chartered Accountants and Statutory Auditor
2 Chawley Park
Cumnor Hill
Oxfordshire
OX2 9GG
Page 9
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2022
Page 10
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
REGISTERED NUMBER: 13212534
CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 33 form part of these financial statements.
Page 11
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
REGISTERED NUMBER: 13212534
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 33 form part of these financial statements.
Page 12
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2022
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2021
Page 13
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2022
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2021
Page 14
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
Page 15
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
Page 16
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
Alpha Group Topco Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. The Group has generated an EBITDA of £2,334,716 during the period ended 30 September 2022, has net current assets as at 30 September 2022 of £518,806 and a net liability of £1,220,986. The Group has bank borrowings subject to various covenants which have not been breached in the period. The forecasts prepared show that Group will meet its financial covenants for at least 12 months from the signing of the financial statements. The Group has considered the expected financial performance, current financial position, existing financial resources and compliance with borrowing covenants for a period of at least 12 months from the date of signing of the financial statements which show the Group and Company to be a going concern. Based on the above, The directors are of the opinion that the going concern principle is applicable and that the Group have the necessary resources to continue as a going concern for the foreseeable future.
Page 17
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Page 18
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
2.Accounting policies (continued)
Page 19
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
2.Accounting policies (continued)
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line or reducing balance methods..
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 20
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
2.Accounting policies (continued)
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance sheet. Goodwill useful economic life Management recognised goodwill for the consideration paid in excess of the fair value of net assets acquired under the purchase method. Management are unable to reliably estimate the useful economic life of the goodwill acquired on acquisition and therefore goodwill is being amortised over 10 years in accordance with FRS 102. Principal Vs Agent Management has considerered each sales contract and whether it is exposed to the significant risks and rewards associated with the rendering of services. Management consider the Company to be acting as a principal in relation to all sales contracts. Stage of completion Management consider each contract and the work performed to date and estimate the remaining expected costs associated with the contract. This estimate depends on an accurate estimate of the costs to complete.
Page 21
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
Analysis of turnover by country of destination:
Page 22
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
Page 23
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
Page 24
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
Page 25
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
11.Taxation (continued)
The main rate of corporation tax will rise from 19% to 25% from 1 April 2023. On this basis deferred tax is provided at the future rate of 25%.
Page 26
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
Page 27
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
Page 28
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
Page 29
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
See note 19 for details on securities of loans.
Page 30
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
Page 31
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
On 6 July 2022, 3,500 ordinay C shares were issued for a total consideration of £3,500.
Share premium account
Profit and loss account
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £205,758 (2021 - £152,842). Contributions totalling £64,586 (2021 - £13,796) were payable to the fund at the balance sheet date and are included in creditors.
Page 32
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ALPHA GROUP TOPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
The immediate and ultimate controlling party is
Page 33
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||