Vgc Services Limited

REVIEW OF THE BUSINESS The principal activity of the company during the year was the letting of property and provision of administrative services. Results and performance VGC Services Limited has continued to act as a service company to the other fellow subsidiaries within VGC Group Limited. VGC Services Limited incurs property and administration expenditure and then recharges this within the group. The results for the year are set out on page 10. Highlights and Key Performance Indicators (KPI's): Turnover of £404,675 (2020 - £503,246) Profit before tax margin 3.03% (2020 2.92%) Strategy and future developments The directors consider the company's position at 31st December 2021 to be consistent with its expectations, and will continue at a similar level over the coming twelve months. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and the accounts. PRINCIPAL RISKS AND UNCERTAINTIES The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls. All policies are subject to Board approval and ongoing review by management. The principal risk arises from cash flow inadequacy which is closely monitored and financially supported by the other group companies. FINANCIAL RISK MANAGEMENT The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are only conducted in sterling. The company's principal methods of financing comprise bank balances, trade creditors and loans to the company. The main purpose of these is to maintain sufficient cash flows needed for the company's operations. The company's approach to managing risks applicable to the financing methods concerned is shown below. In respect of bank balances the liquidity risk is managed by maintaining a positive cash balance. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.