REGISTERED NUMBER: |
STRATEGIC REPORT, DIRECTORS' REPORT AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023 |
FOR |
BOSTON LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, DIRECTORS' REPORT AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023 |
FOR |
BOSTON LIMITED |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Directors' Report | 6 |
Independent Auditors' Report | 9 |
Income Statement | 13 |
Other Comprehensive Income | 14 |
Statement of Financial Position | 15 |
Statement of Changes in Equity | 16 |
Notes to the Financial Statements | 17 |
BOSTON LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
40 Queen Anne Street |
London |
W1G 9EL |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
The directors present their strategic report for the year ended 28 February 2023. |
REVIEW OF BUSINESS |
The directors are pleased with the results of the company for the year. |
The company has maintained its focus on growth and expansion into various territories and has made further progress during the year. The company has continued its strategic expansion into foreign markets. |
Turnover is in line with the previous period and the gross profit margin increased from 15.97% to 17.98%. |
The company has maintained high stock levels to mitigate against the effects of the global shortage of computer components and enable it to meet customers' demands in a timely manner. |
The directors are optimistic with regard to the general market conditions for the coming year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company completes a full business planning exercise every six months that identifies the risks associated with the business and assesses measures in place to mitigate those risks. The main areas of review are financial, market and resources. |
The directors have undertaken a detailed Profit and Loss and Cash Flow forecasting exercise. This has included sensitivity analysis on sales performance and debtor payment rates. As a result of this work and the continuing strong performance of the business the directors are comfortable that the company has the resources it requires to thrive for the foreseeable future. |
The war in Ukraine poses a threat to supply chains and to customer demand for IT products in the affected areas. The company has increased its stock holding to mitigate against possible increases in lead times and ensure that customers' needs can continue to be met in a timely fashion. |
The company generates significant turnover from the Eurozone and far east. The company continues to purchase most of its supplies in US Dollars and significant sales are made in Euro. The directors continually monitor the exchange rates and mitigate, where possible, against potential exchange losses. The currency market was volatile during the financial year ending 28 February 2023 and exceptional foreign exchange losses of £1,454,086 were incurred by the company as set out in note 6. The pound weakened due to political uncertainties and generated foreign exchange losses. Losses of this magnitude are not expected to continue into future financial years and are therefore exceptional in nature. |
The inherently competitive nature of the IT market results in a continual risk to an established customer base. However, a strong feature of Boston Limited is its customer loyalty and breadth of client base. |
The delivery of products and services to clients is reliant on a strong customer interface, particularly from engineering and sales staff. There is a risk in the ability to meet customer requirements and sustain customer relationships from employees leaving the business. |
Management and related systems are in place to ensure that any relationship has multiple points of contact, which has been augmented by the business growing in scale. Constant appraisal of human resources, best practice and individual review also contribute to an ideal and desired working environment. |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
SECTION 172(1) STATEMENT |
The Board recognises a wide range of stakeholder interests and seeks to create a culture whereby decisions are made with consideration to the wider impact upon the organisation as well as financial performance and strategic objectives. The Directors continue to have regard to the interests of the Company's employees and other stakeholders, including the impact of its activities on the community, the environment and the Company's reputation, when making decisions. Acting in good faith and fairly between members, the Directors consider what is most likely to promote the success of the Company for its members in the long term. Whilst the importance of giving due consideration to our stakeholders is not new, we are explaining in more detail how the Board engages with our stakeholders, thus seeking to comply with the requirement to include a statement setting out how our Directors have discharged this duty. |
During the last year, the Board has dealt with the continuing challenges of integrating into the new parent group of 2CRSI SA. The Board has continued to seek the advice and input from people within the business to help mitigate any negative impacts. |
Over the last thirty years, the Board of Directors are extremely proud of the achievements made in terms of driving improvements in service delivery and workforce pay and conditions and the work undertaken this year has continued to safeguard those achievements. |
The Board regularly reviews our principal stakeholders and how we engage with them. The stakeholders' voice is brought into the boardroom throughout the annual cycle through information provided by management and also by direct engagement with stakeholders themselves. The relevance of each stakeholder group may increase or decrease depending on the matter or issue in question, so the Board seeks to consider the needs and priorities of each stakeholder group during its discussions and as part of its decision making. |
The Board continues to enhance its methods of engagement with the workforce with transparency and openness and keeps this under review. The Board has overseen the implementation of measures to ensure that stakeholder interests are always taken into account. In addition to the existing forums for workforce engagement which include all company meetings, line management, HR communication routes and informal discussion the Board is looking at additional formal options to promote workforce engagement. |
We have a clear supplier approval process and code of conduct which enables us to carefully select the suppliers we partner with, working on a variety of important matters with a particular focus on sustainability within our supply chain. The Board recognises that maintaining good relationships with our suppliers is key and we endeavour to adopt a partnership approach with them. This allows us to share our values and work together towards supporting the communities within which we operate. During the year, the Board reviewed our compliance with the Modern Slavery and Human Trafficking Statement which sets out the steps taken to prevent modern slavery in our business and supply chains. |
Our employees are fundamental to meeting our strategic priorities. We recognise that we are in an increasingly competitive environment with regard to attracting and retaining skilled staff and as such have taken a companywide approach to ensuring that we are an attractive organisation to join and to develop a successful career with. We aim to be a responsible employer in our approach to the pay and benefits that our employees receive and have implemented strong governance to ensure diversity, equality, fair treatment and opportunity for all. We have put particular emphasis on programmes to attract women into IT and into management positions The health, safety and well-being of our employees is our primary consideration in the way we do business. For those able to work from home the Board delivered the infrastructure to support this and their working efficiency. All of our employees had check ins with the health and safety and HR teams to check on their wellbeing. This was done either face to face or virtually for those working from home. This ensured our employees knew they had support and could raise any concerns they had about their general wellbeing, management support or regarding their work environment. |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
Mental health champions have been appointed since Boston signed the Time to Change Pledge in 2018 and they have all received external specialist training. We do regular mental health events such as tea and talk, HR also send monthly emails or information in our monthly all staff newsletter, with supporting advice and suggestions about their wellbeing/stress. We remind our employees about who our mental health champions are in all wellbeing communications so that they know who to contact if they are struggling. We have added additional benefits to the team to encourage positive wellbeing such as Perk Box (who provide 24/7 wellbeing support) subsidised gym memberships and the government cycle scheme. Health, safety and environmental risks are fully embedded in the governance structures of the company. The emphasis that the Board places on this area is evidenced by the internal audit function, which plays an active role in monitoring company activities, and reports into the Board. As the Board of Directors, our intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of business conduct and good governance. Our code of conduct acts as a guide for employees to behave responsibly in business and focuses on the values and behaviours deemed important. This expectation is cascaded throughout the business. Employee reward and recognition is directed towards delivering high service levels, in a safe and responsible environment. The Company has embedded policies in place which assist with ensuring high standards of conduct, including in respect of the key areas of health, safety and environment; whistleblowing, anti-bribery and corruption; human rights; and modern slavery. |
We have been recognised as an organisation which is delivering strongly on the social responsibility agenda. The company takes a strategic approach to corporate social responsibility and embeds it into every area of our business. We aim to act responsibly in how we engage with our suppliers. We expect our suppliers to acknowledge the significance of social, environmental and ethical matters in their conduct and demonstrate compliance with legislation. We consider our environmental impacts with a focus on sustainable initiatives for environmental efficiency. This is evidenced by our ISO9001 and ISO14001 certification and this is subject to external audit annually to ensure continuing compliance. |
The Board of Directors acknowledges the importance of good payment practices and is committed to ensuring that suppliers are paid on a timely basis to agreed terms. |
As the Board of Directors, we endeavour to behave responsibly toward our shareholders and treat them fairly and equally, so that they will benefit from the company meeting its strategic objectives. The Directors regularly make themselves available for dialogue with shareholders and take a collaborative approach to engagement. |
KEY PERFORMANCE INDICATORS |
The directors use many performance indicators to monitor the company's position. |
Among the financial performance indicators, the most important are overall gross profit margin, turnover, stock availability and stock levels. |
2023 | 2022 |
Gross profit margin | 17.98% | 15.97% |
Turnover | £72,269,932 | £72,676,913 |
Stock turnover | 4 | 4 |
Stock in hand (days) | 104 | 100 |
Gross profit margin has increased to 17.98% from 15.97% in the previous year. Turnover has remained consistent with the previous year. Stock turnover of 4 times is consistent with the previous year. Stock in hand days increased to 104 days from 100 days in the previous year. It is encouraging that profit margins continue to increase and stock levels are sufficient to provide the best level of customer service. |
Among the non financial performance indicators, the most important are health and safety, staff turnover and supplier and customer satisfaction. These are monitored by regular communication with staff, customers and suppliers. In the event of any adverse findings, appropriate remedial action is taken. |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
STRATEGY |
The company’s success is dependent on the proper selection, pricing and ongoing management of the risks it accepts. |
The company will continue to consolidate its position and concentrate its efforts on achieving maximum growth in its existing market segments. We aim to improve efficiency in all areas of our operations throughout the next period. |
ON BEHALF OF THE BOARD: |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
The directors present their report with the financial statements of the company for the year ended 28 February 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of providing computer services, to include the sale of equipment and peripherals. |
DIVIDENDS |
No dividends will be distributed for the year ended 28 February 2023. |
FUTURE DEVELOPMENTS |
The reliance of a significant proportion of businesses on technology and the pace of change in the development of that technology continues to drive an overall market that consistently grows faster than GDP. However, it remains a highly competitive market place and that puts pressure on margins and customer acquisition and retention. |
Against this model the company is focused on customers where value is more important but this does require greater investment in research and development of new products and solutions for clients. Custom built products and test facilities along with cloud-based solutions are some of the value-added services which put Boston Limited a step ahead of its competitors. |
The employees of the company continue to be at the centre of delivering a differentiated customer service and there is strong commitment to personal growth and development. |
Whilst times remain challenging, the UK's economic indicators continue to bode well, therefore we expect our expansion to continue for the foreseeable future. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 March 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT |
The company's financial assets and liabilities consist of trade debtors and creditors, bank balances and invoice discounting. The directors manage the company's exposure to financial risk by researching the credit worthiness of customers and by seeking advice from the company's providers of finance and its external financial advisers. Currency risk is restricted to the short term settlement of trading balances with customers and suppliers. The company does not trade speculatively in derivatives or similar instruments. |
POLITICAL DONATIONS AND CHARITABLE EXPENDITURE |
The company made charitable donations of £4,747 (2022 - £2,271) during the year to various UK registered charities. |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
GOING CONCERN |
The company achieved a consistent turnover and margins increased as compared to the previous year. Business continued to be derived from a wide range of markets and a diverse customer base. |
Management accounts are reviewed monthly by the directors and senior management. Management information is analysed against comparative period and forecast to ensure growth continues in a stable manner. |
Any fundamental changes in strategy or potential acquisition or disposal must be approved by the majority of shareholders. |
Banking facilities remain in place with HSBC Bank including an invoice discounting facility. The company is also part of the 2CRSI cash management agreement which enables the company to obtain funds from specified related parties. |
The directors have undertaken a detailed Profit and Loss and Cash Flow forecasting exercise. This has included sensitivity analysis on sales performance and debtor payment rates. As a result of this work and the continuing strong performance of the business the directors are comfortable that the company has the resources it requires to thrive for the foreseeable future. |
It is the opinion of the directors that the continued arrangements will adequately support the business for future growth. The company is well established within the mid market of IT equipment sellers and has previously been able to supply highly regarded technology products and solutions to a receptive market. |
With IT products and solutions still regarded as a key enabler for business growth and in many cases representing non-discretionary budget, the directors believe that the forecasts are achievable and therefore the company is a going concern for the foreseeable future. |
QUALIFYING THIRD PARTY INDEMNITY PROVISIONS |
During the period and up to the date of this report, the company maintained liability insurance and third party indemnification provisions for its directors, under which the company has agreed to indemnify the directors to the extent permitted by law in respect of all liabilities to third parties arising out of, or in connection with, the execution of their power, duties and responsibilities as directors of the company. |
STREAMLINED ENERGY AND CARBON REPORTING |
Boston Limited is a limited company, registered in England with Company Number 02771869 and Registered Office at Unit 5, Curo Park, Frogmore, St. Albans, Herts, AL2 2DD. |
The company has gathered data regarding scope one and scope two carbon emissions (as defined by the GHG Protocol) for the financial year spanning 1st March 2022 to 28th February 2023 from its UK operations for inclusion in Company Reporting as defined by the requirements of the Streamlined Energy and Carbon Reporting (SECR) legislation. |
Year ended | Year ended |
28 Feb 2023 | 28 Feb 2022 |
Energy consumption used to calculate emissions (kWh) | 1,030,639 | 992,797 |
Emissions from scope one fuels (tCO2e) | 22 | 30 |
Emissions from scope two purchased electricity (tCO2e) | 178 | 183 |
Emissions from scope three energy (tCO2e) | 2 | Not reported |
Total gross emissions (tCO2e) | 202 | 213 |
Emissions avoided by purchasing renewable electricity (tCO2e) | 178 | Not reported |
Total annual net emission s (tCO2e) | 24 | Not reported |
Intensity rate tCO2e / £1000 turnover | 0.003 | 0.003 |
Methodology | GHG Protocol | GHG Protocol |
Notes: |
1. Carbon intensity factors taken from BEIS factors for company reporting |
2. Carbon intensity factors quoted as Gross CV and kg CO2e |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
The combined scope one and scope two carbon emissions for the period was recorded at 200 tCO2e. This is a reduction of 6% from the previous year of reporting. |
The intensity rate for the period is calculated at 0.003 tCO2e per £1,000 of turnover, consistent with the previous year. |
. |
At Boston Limited we recognise the importance of our environmental responsibilities in all our operations and continue to seek to reduce our carbon footprint. During the period of reporting the company has been replacing all lighting from fluorescent tubes to LEDs; changing the meeting rooms, kitchens and toilets to automatic lighting; progressively changing all vehicles to electric and hybrid; and engaging with a consultant on a route to net zero. We have an Environmental Objective to understand our emissions and implement a carbon reduction plan by the end of 2023. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 company's transactions and disclose with reasonable accuracy at any time the financial position of 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Lewis Golden LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
BOSTON LIMITED |
Opinion |
We have audited the financial statements of Boston Limited (the 'company') for the year ended 28 February 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 28 February 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
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 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. |
Other information |
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. |
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 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 Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
BOSTON LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the 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 eight, 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. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
BOSTON LIMITED |
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 an Auditors' 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. |
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: |
As part of designing our audit, we determined materiality and assessed the risk of material misstatement in the financial statements, whether due to fraud or error, and then designed and performed audit procedures in response to those risks. In particular, we looked at where the directors made subjective judgements such as making assumptions on significant accounting estimates. |
We tailored the scope of our audit to ensure that we performed sufficient work to be able to give an opinion on the financial statements as a whole. We used the outputs of a risk assessment, our understanding of the company's environment, internal controls and critical business processes, to consider qualitative factors in order to ensure that we obtained sufficient coverage across all financial statement line items. |
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. In identifying and assessing risks of material misstatement in respect of irregularities including non-compliance with laws and regulations, our audit procedures included but were not limited to: |
* At the planning stage of the audit, we obtained an understanding of the legal and regulatory framework applicable to the company, the industry in which the company operates, and the structure of the company's group, and considered the risk of failing to comply with these legal and regulatory requirements; |
* Discussions were held with, enquiries made of, management and those charged with governance with a view to identifying the laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, and during the audit the engagement team remained alert to any indications of non-compliance; |
* We considered the risk of failing to comply with these legal and regulatory requirements, and also considered how a fraud could occur within the company's group; |
* We discussed with management and those charged with governance the policies and procedures in place regarding compliance with laws and regulations; and |
* During the audit, we focussed on areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with those charged with governance (as required by auditing standards), from inspections of the company's regulatory and legal correspondence. |
We also considered those other laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, and UK tax legislation. |
Our procedures in relation to fraud included but were not limited to: |
* Inquiries of management whether they have any knowledge of any actual, suspected or alleged fraud; |
* Gaining an understanding of the internal controls established to mitigate risk related to fraud; |
* Using analytical procedures to identify any unusual or unexpected relationships; |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
BOSTON LIMITED |
* Discussion amongst the engagement team regarding risk of fraud, such as opportunity for fraudulent manipulation of financial statements; and |
* Scrutiny review of unusual transactions and entries into sensitive nominal ledger accounts. |
The primary responsibility for the prevention and detection of irregularities including fraud, rests with both those charged with governance and management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. |
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 Auditors' 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 Auditors' 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 |
40 Queen Anne Street |
London |
W1G 9EL |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
INCOME STATEMENT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
11,883,326 | 9,434,809 |
1,111,869 | 2,170,020 |
Other operating income |
OPERATING PROFIT | 6 |
Interest receivable and similar income | 8 |
2,580,414 | 3,415,619 |
Interest payable and similar expenses | 9 |
PROFIT BEFORE TAXATION |
Tax on profit | 10 |
PROFIT FOR THE FINANCIAL YEAR |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Surplus on revaluation of land and |
buildings |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
STATEMENT OF FINANCIAL POSITION |
28 FEBRUARY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Revaluation reserve | 23 |
Capital redemption reserve | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 March 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 28 February 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 28 February 2023 |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
1. | STATUTORY INFORMATION |
Boston 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. |
The functional and presentation currency of the company and the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
BASIS OF PREPARING THE FINANCIAL STATEMENTS |
FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirement of paragraph 33.7. |
PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS |
The financial statements contain information about Boston Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, 2CRSI SA, 32, rue Jacobi Netter, 67200 Strasbourg, France. |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
TURNOVER |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
The company derives its turnover mainly from the sale of computer equipment, peripherals and related services. Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, net of discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised: |
Sale of goods |
Turnover from the sale of goods is recognised when all of the following conditions are satisfied: |
- the company has transferred the significant risks and rewards of ownership to the buyer i.e. at the point of delivery; |
- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of turnover can be measured reliably; |
- it is probable that the company will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Rendering of services |
Turnover for services rendered is recognised when the outcome of a transaction involving the rendering of services can be estimated reliably. The turnover from rendering of services is recognised in the period in which the services are rendered or, when there is an indeterminate number of acts over a specified period of time, on a straight-line basis over the specified period. The company bases its estimate of returns on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. |
Turnover recognition for warranties |
The company offers advanced warranties which are not separable from the sale of goods. In line with FRS102 the turnover from the sale of advanced warranties is recognised and a provision is made against the full amount of the cost of sale for the expected cost of repairs. In addition, the reimbursement of costs from suppliers is separately recognised as an asset. |
Extended warranties are separable from the sale of goods since these can be sold separately from the sale of goods. The turnover from the sale of the extended warranty is deferred and recognised over the period covered by the warranty. |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
TANGIBLE FIXED ASSETS |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible fixed assets, excluding freehold property, under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
No depreciation is provided on freehold land. Land and property valuations are carried out with sufficient regularity to ensure that the valuation is always materially correct. The surplus or deficit on revaluation is taken to the revaluation reserve, except to the extent that the deficit exceeds any previous revaluation surplus on a particular asset, in which case it is charged to profit and loss. |
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. |
INVESTMENTS IN SUBSIDIARIES |
Investments held as fixed assets are stated at cost less any provisions for impairment. Investments are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairments are calculated such that the carrying value of the fixed asset investment is the lower of its cost or recoverable amount. Recoverable amount is the higher of its net realisable value and its value-in-use. Where carrying values of such investments exceed the value of individual investments, such excess is not recognised until such time as the company receives income or such investments are disposed of. Any income derived from these investments is shown separately in the income statement for the year in which such income is received. |
STOCKS |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
The stock system operates on a FIFO system and uses the same cost formula for all inventories having a similar nature and use to the company. |
The company assesses at the end of the reporting period whether any inventories are impaired, i.e. carrying amount is not fully recoverable because of damage, obsolescence or declining selling prices. If an item of inventory is impaired it is measured at its selling price less costs to complete and sell and an impairment loss is recognised. |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
FINANCIAL INSTRUMENTS |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties. Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date. |
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
TAXATION |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
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 statement of financial position date. |
DEFERRED TAX |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
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 year end and that are expected to apply to the reversal of the timing difference. |
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. |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
RESEARCH AND DEVELOPMENT |
Expenditure on research and development is written off in the year in which it is incurred. |
FOREIGN CURRENCIES |
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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. |
PENSION COSTS |
The company operates a defined contribution scheme for its employees. A defined contribution scheme is a pension scheme under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in the income statement when they fall due. Amounts not paid are shown in accruals as a liability in the statement of financial position. The assets of the scheme are held separately from those of the company in an independently administered fund. |
DEBTORS |
Trade and other receivables are stated at transaction price less any impairment. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value net of transaction costs and are measured subsequently at amortised cost using the effective interest method. |
INVOICE DISCOUNTING |
The company operates an invoice discounting facility with HSBC Bank Plc where its unpaid accounts receivable are used as collateral for a loan facility. The debt is secured by way of fixed or floating charge over the assets of the company. The balance shown in the financial statements represents the rights and obligations on any cash withdrawn or received from this facility. |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
LEASES |
Leased assets |
At inception the Company assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is, or contains, a lease based on the substance of the arrangement. |
i. Finance leased assets |
Leases of assets that transfer substantially all the risks and rewards incidental to ownership are classified as finance leases. Finance leases are capitalised at commencement of the lease as assets at the fair value of the leased asset or, if lower, the present value of the minimum lease payments calculated using the interest rate implicit in the lease. Where the implicit rate cannot be determined, the group's incremental borrowing rate is used. Incremental direct costs, incurred in negotiating and arranging the lease, are included in the cost of the asset. |
Assets are depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are assessed for impairment at each reporting date. |
The capital element of lease obligations is recorded as a liability on inception of the arrangement. Lease payments are apportioned between capital repayment and finance charge, using the effective interest rate method, to produce a constant rate of charge on the balance of the capital repayments outstanding. |
ii. Assets leased to customers |
Leases of assets that transfer substantially all the risks and rewards incidental to ownership are classified as finance leases. Finance lease receivables are recognised at commencement of the lease as assets at the fair value of the leased asset or, if lower, the present value of the minimum lease payments receivable calculated using the interest rate implicit in the lease. Where the implicit rate cannot be determined, this is estimated having regard to other finance leases of a similar nature. |
The capital element of lease receivables is recorded as an asset on inception of the arrangement. Lease payments received are apportioned between capital repayment and finance charge, using the effective interest rate method, to produce a constant rate of charge on the balance of the capital repayments outstanding. |
iii. Operating leased assets |
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the income statement on a straight-line basis over the period of the lease. |
iv. Lease incentives |
Incentives received to enter into a finance lease reduce the fair value of the asset and are included in the calculation of present value of minimum lease payments. |
Incentives received to enter into an operating lease are credited to the income statement to reduce the lease expense, on a straight-line basis over the period of the lease. |
Interest receivable |
Interest income from finance leases is recognised using the internal rate of return and applied to the present value of lease receivables, recognised as the lease receivable falls due and presented after operating profit in the income statement. |
Interest payable |
Interest payable on finance leases is recognised using the internal rate of return and applied to the present value of lease payables, recognised as the lease payments fall due and presented after operating profit in the income statement. |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
All borrowing costs are recognised in the income statement in the period in which they are incurred. |
Other operating income |
Boston Limited recognises marketing income and government grants as other operating income. |
Marketing income |
Marketing income is recognised as each stage of a contract has been fulfilled or completed. |
Provisions for liabilities |
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense in the income statement in the year that the company becomes aware of the obligation and are measured at the best estimate at the statement of financial position 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 statement of financial position. |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
When preparing the financial statements, management makes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses. |
Stocks |
Management estimates the net realisable value of inventories, taking into account the most reliable evidence available at each reporting date. The future realisation of these inventories may be affected by future technology or other market-driven changes that may reduce future selling prices or its use. The carrying amount of Stock is disclosed in note 13. |
Debtors and bad debt provision |
Management estimates the recoverability of its debtors in its financial statements which requires management to make judgements, estimates and associated assumptions necessary to calculate these provisions based on historical experience and other reasonable factors.The bad debt provision policy is to provide for all overdue balances that are 180 days from the due date except for where there is evidence of proven collectability. The carrying amount of Debtors is disclosed in note 14. |
Sales return provision |
Boston Limited operates Sale or Return (SOR) agreements with some of its customers. This is where the customer will be sent items/products for them to use, prior to purchase or return at an agreed time. All SOR agreements are provided for in the financial statements. |
Assessment of impairment of intercompany balances |
An impairment review of all intercompany balances as at 28 February 2023 was performed and it was concluded that there was no impairment and all outstanding balances with intercompany entities or related parties are recoverable. The intercompany balances are disclosed in note 26. |
Useful lives of tangible fixed assets |
Depreciation is provided so as to write down the assets to their residual values over their estimated useful economic lives as set out in the company's accounting policy. The selection of these estimated lives requires the exercise of management judgement. Useful lives are regularly reviewed, and should management's assessment of useful lives shorten then depreciation in the financial statements would increase and the carrying amounts of tangible fixed assets would reduce. The cost, depreciation and carrying amount of Fixed Assets are disclosed in note 11. |
Warranties |
Standard advanced warranties offered by Boston Limited are generally three years in length. We have estimated a provision of 0.2436% of the past three years turnover to cover the provision for defective or faulty parts. The percentage used is based on the last three years of warranty claims as a percentage of total turnover for the same period. |
In addition, 0.1259% of the past three years turnover is recognised as an asset relating to the corresponding supplier credits covered by the corresponding supplier warranties. The percentage used is based on the last three years of warranty claims of the company as a percentage of total turnover for the same period. |
Leases |
Boston Limited transact sale and lease back (head leases) and sub leases contracts. The head leases and sub leases have been treated as finance leases. An internal rate of return (IRR) is calculated based on the details of each individual contract. Where a residual value is not explicit in the contract, an estimate based on a similar contract is used to calculate the IRR. The carrying amounts of Lease receivables and Lease payables are disclosed in note 28. |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
Europe |
Rest of the world | 16,331,878 | 17,121,226 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management | 22 | 20 |
Administration and general staff | 110 | 103 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Foreign exchange differences |
The currency market was volatile during the financial year ending 28 February 2023. The pound weakened due to political uncertainties and generated foreign exchange losses. These losses are not expected to continue into future financial years and are therefore exceptional in nature |
7. | AUDITORS' REMUNERATION |
2023 | 2022 |
£ | £ |
Fees payable to the company's auditors and their associates for the audit of the company's financial statements |
210,144 |
100,751 |
8. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2023 | 2022 |
£ | £ |
Interest from related parties |
Lease interest income |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Bank loan interest |
Invoice discounting interest |
Interest paid to related |
parties |
Interest on directors' loans |
Loan |
Interest on tax |
Leasing |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
UK corporation tax has been charged at 19% (2022 - 19%). |
RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
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 | - |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Deferred tax movement |
Total tax charge | 245,210 | 420,330 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Surplus on revaluation of land and |
buildings | - | 208,226 |
208,226 | - | 208,226 |
An increase to the UK corporation tax rate for future periods has been announced by the Chancellor of the Exchequer. This increases the main rate to 25% from 1 April 2023. |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 March 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
Revaluations |
At 28 February 2023 |
DEPRECIATION |
At 1 March 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Revaluation adjustments | ( |
) | ( |
) |
At 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 28 February 2022 |
Included in cost or valuation of land and buildings is freehold land of £ 736,420 (2022 - £ 736,420 ) which is not depreciated. |
Cost or valuation at 28 February 2023 is represented by: |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2012 | (127,904 | ) | - | - | - | (127,904 | ) |
Valuation in 2015 | 150,000 | - | - | - | 150,000 |
Valuation in 2020 | 550,000 | - | - | - | 550,000 |
Valuation in 2023 | 150,000 | - | - | - | 150,000 |
Cost | 1,077,904 | 168,542 | 767,927 | 10,489 | 2,024,862 |
1,800,000 | 168,542 | 767,927 | 10,489 | 2,746,958 |
If freehold property had not been revalued it would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 1,077,904 | 1,077,904 |
Aggregate depreciation | 219,452 | 201,012 |
Value of land in freehold land and buildings | 736,420 | 736,420 |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
The valuation of the freehold property was made in February 2023 by an independent valuer who is external to the company. The valuation of the freehold property is derived from valuation and estimation techniques, which require a combination of assumptions including rental and sales values, the condition of the property, local property market conditions and the economic climate. |
12. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 March 2022 |
Additions |
At 28 February 2023 |
PROVISIONS |
At 1 March 2022 |
and 28 February 2023 | 300,000 |
NET BOOK VALUE |
At 28 February 2023 |
At 28 February 2022 |
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Kapellenstr. 11, 85622, Feldkirchen, Germany |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Profit for the year |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: Kapellenstr. 11, 85622, Feldkirchen, Germany |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Level 5, 1 Chifley Square, Sydney, NSW 2000, Australia |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Profit for the year |
Registered office: SNG Grant Thornton Pretoria, Building 4, Summit Place Office Park, 221 Garstfontein Road, Menlyn, Pretoria 0181, South Africa |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
Registered office: 64 Ground Floor, Railway Parallel Road, Kij, Marapark West, Bangalore, Karnataka-560020, India |
Nature of business: |
% |
Class of shares: | holding |
2023 |
£ |
Aggregate capital and reserves |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
ASSOCIATED COMPANY |
Registered office: Le Theleme, 1503 Rte Des Dolines, 06560 Valbonne, France |
Nature of business: |
% |
Class of shares: | holding |
Boston Limited holds 50% of the issued share capital of Boston France SARL but under FRS102 Section 9, the directors deem that there is no significant control over this entity and hence this company is accounted for as an investment. |
13. | STOCKS |
2023 | 2022 |
£ | £ |
Components |
14. | DEBTORS |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Amounts owed by participating interests | 1,479,334 | 1,281,044 |
Other debtors |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Other debtors |
Aggregate amounts |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Trade creditors |
Amounts owed to group undertakings |
Amounts owed to participating interests | 2,694,997 | 1,498,139 |
Tax |
Social security and other taxes |
VAT | 1,260,930 | 883,157 |
Other creditors |
Invoice discounting | 71,758 | 2,476,796 |
Directors' current accounts | 993,052 | 844,982 |
Accruals and deferred income |
The Directors' current account bears interest at the rate of 6.5% above the Bank of England base rate per annum. The interest expense recognised during the year amounted to £71,175 (2022 - £48,725). The amount is unsecured and has open terms. |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Other creditors |
17. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
18. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
Invoice discounting | 71,759 | 2,476,796 |
The clean import line facility had an outstanding balance of £4,328,949 (2022 - £4,657,543). |
The invoice discounting facility liability outstanding at the year end was £Nil (2022 - £2,476,796). At the year end, the invoice discounting account showed a debit balance of £170,642 (2022 - liability as above) which is included in debtors. |
The company's only banking relationship is with HSBC Bank plc. A fixed and floating charge was created by the company for securing all monies due or becoming due to HSBC Bank plc. The debt is secured by way of a fixed and floating charge over the assets of the company including a charge on the freehold property owned by the company. |
A cross guarantee exists between Boston Limited and Escape Technology Limited. |
20. | FINANCIAL INSTRUMENTS |
28.2.23 | 28.2.22 |
£ | £ |
Financial assets |
Financial assets measured at amortised cost | 17,391,321 | 19,572,833 |
Financial liabilities |
Financial liabilities measured at amortised cost | 18,741,702 | 23,938,140 |
Financial assets measured at amortised cost comprise cash at bank and in hand, trade debtors, other debtors and amounts owed by the group undertakings and other related parties. |
Financial liabilities measured at amortised cost comprise trade creditors, other creditors and loans and amounts owed to the group undertakings and other related parties. |
21. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 229,779 | 183,926 |
Advanced warranty provision | 502,955 | 482,420 |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
21. | PROVISIONS FOR LIABILITIES - continued |
Advanced |
Deferred | warranty |
tax | provision |
£ | £ |
Balance at 1 March 2022 |
Charge to Income Statement during year |
Balance at 28 February 2023 |
Included in debtors is £263,966 (2022 - £348,408) which represents amounts that are expected to be reimbursed from suppliers in respect of the advanced warranty provision. |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 43,016 | 43,016 |
Ordinary B | £1 | 43,015 | 43,015 |
86,031 | 86,031 |
The shares of the company rank pari passu. |
23. | RESERVES |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 March 2022 | 13,554,526 |
Profit for the year |
Surplus on revaluation of land and buildings |
- |
208,226 |
- |
208,226 |
At 28 February 2023 | 15,562,759 |
24. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £175,072 (2022 - £412,296). Contributions totalling £36,522 (2022 - £30,798) were payable to the fund at the reporting date and are included in creditors. |
25. | CONTINGENT LIABILITIES |
At the year end there were guarantees totalling $323,589 (2022 - $323,589) in favour of The European Organization for Nuclear Research, $1,000,000 (2022 - $1,000,000) in favour of PNY Technologies Europe SAS and €250,000.(2022 - €Nil) in favour of TD Synnex Germany GMBH & CO OHG. |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
26. | RELATED PARTY DISCLOSURES |
2023 | 2022 |
£ | £ |
Sales |
Purchases |
Interest paid to related party | 29,952 | 28,876 |
Amount due from related party |
Amount due to related party |
2023 | 2022 |
£ | £ |
Sales |
Purchases |
Expenses recharged to related parties | - | 373,965 |
Interest receivable from related parties | 18,349 | 11,153 |
Amount due from related parties |
Amount due to related parties |
2023 | 2022 |
£ | £ |
Interest paid to related parties | 71,175 | 48,725 |
Amount due to related parties |
2023 | 2022 |
£ | £ |
Sales |
Purchases |
Amount due from related parties |
Amount due to related parties |
27. | CONTROLLING PARTIES |
The immediate parent undertaking is 2CRSI London Limited, a company incorporated under UK law. |
The ultimate parent undertaking is 2CRSI SA, a company incorporated under French law. The registered office is at 32 rue Jacobi Netter, 67200 Strasbourg, France. |
The ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is 2CRSI SA. Copies of the 2CRSI SA consolidated financial statements can be obtained from the Company Secretary at its registered office mentioned above or at 2CRSI SA's website. |
The ultimate controlling party is Mr Alain Wilmouth. |
BOSTON LIMITED (REGISTERED NUMBER: 02771869) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
28. | FINANCE LEASES |
The finance leases primarily relate to IT equipment sold by the company, leased-back and subsequently subleased to customers. Certain finance lease agreements include renewal and purchase options. There are no contingent rentals. |
Lease receivable under the sublease arrangements: | 28.2.23 | 28.2.22 |
£ | £ |
Carrying value | 382,651 | 797,570 |
Minimum lease receivable |
Within one year | 216,963 | 433,382 |
Between one and five years | 165,688 | 364,188 |
382,651 | 797,570 |
Lease payable under the headlease arrangements: | 28.2.23 | 28.2.22 |
£ | £ |
Carrying value | (280,458 | ) | (418,503 | ) |
Minimum lease payable |
Within one year | (138,590 | ) | (138,045 | ) |
Between one and five years | (141,868 | ) | (280,458 | ) |
(280,458 | ) | (418,503 | ) |