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Financial Statements |
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for the Year Ended 30 September 2017 |
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for |
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Axon Automotive Limited |
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REGISTERED NUMBER:
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Financial Statements |
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for the Year Ended 30 September 2017 |
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for |
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Axon Automotive Limited |
Axon Automotive Limited (Registered number: 05653157) |
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Contents of the Financial Statements |
for the Year Ended 30 September 2017 |
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Page |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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Axon Automotive Limited |
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Company Information |
for the Year Ended 30 September 2017 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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63 Broad Green |
Wellingborough |
Northamptonshire |
NN8 4LQ |
Axon Automotive Limited (Registered number: 05653157) |
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Balance Sheet |
30 September 2017 |
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2017 | 2016 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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CURRENT ASSETS |
Stocks |
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Debtors | 6 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT LIABILITIES | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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( |
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CREDITORS |
Amounts falling due after more than one
year |
8 |
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NET LIABILITIES | ( |
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CAPITAL AND RESERVES |
Called up share capital |
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Capital contribution reserve |
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Retained earnings | ( |
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SHAREHOLDERS' FUNDS | ( |
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) |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors on
behalf by: |
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Axon Automotive Limited (Registered number: 05653157) |
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Notes to the Financial Statements |
for the Year Ended 30 September 2017 |
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1. | STATUTORY INFORMATION |
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Axon Automotive Limited is a
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The company's registered number and registered office address can be found on the Company |
Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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This is the first period that the Company has presented its financial statements under Section 1A of |
FRS 102 issued by the Financial Reporting Council. The last financial statements under the previous |
GAAP were for the period 30th September 2016 and the date of transition to FRS 102 was therefore |
1st October 2016. |
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The transition to FRS102 has led to the restatement of below market rate loans from the date of |
transition as FRS102 requires financial liabilities to measured at amortised cost. |
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Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 |
'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related |
party transactions with wholly owned subsidiaries within the group. |
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Revenue |
Turnover is stated net of VAT and is recognised when significant risks and rewards are considered to |
have been transferred to the buyer. Turnover from the sale of goods is recognised when goods are |
physically delivered to the customer. Turnover from the supply of services represents the value of |
services provided under contracts to the extent that there is right to consideration and is recorded at |
the fair value of the consideration received or receivable. Where a contract has only been partially |
completed at the balance sheet date turnover represents the fair value of the services provided to date |
based on stage of completion of the contract activity at the balance sheet date. |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured |
at cost less accumulated amortisation and any accumulated impairment losses. |
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Research and development costs are being amortised evenly over their estimated useful life between |
5 and 10 years. |
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Tangible fixed assets |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Computer equipment | - |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for |
obsolete and slow moving items. |
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Axon Automotive Limited (Registered number: 05653157) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 September 2017 |
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2. | ACCOUNTING POLICIES - continued |
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. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been |
enacted or substantively enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at |
the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods |
different from those in which they are recognised in financial statements. Deferred tax is measured |
using tax rates and laws that have been enacted or substantively enacted by the year end and that are |
expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable |
that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Research and development |
Expenditure on research is written off against profits in the year in which it is incurred, with the |
exception of certain development expenditure to the extent that its recovery can reasonably be |
regarded as assured, in which case such expenditure is capitalised and amortised over its anticipated |
useful life. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the |
company's pension scheme are charged to profit or loss in the period to which they relate. |
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Government grants |
The company received grants from the government in respect of the technical development of green |
fuel motor vehicles. The grants are paid in arrears and treated on the accruals basis in line with group |
accounting policies. |
Axon Automotive Limited (Registered number: 05653157) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 September 2017 |
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2. | ACCOUNTING POLICIES - continued |
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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 accounts receivable and payable, loans from banks |
and other third parties, and loans to related parties. |
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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 payables or receivables, 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 out-right 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. |
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Certain long term shareholder loan liabilities constitute a finance transaction because they are at a |
below market rate of interest. Such loans are measured at the present value of the future payments |
discounted at a market rate of interest for a similar debt instrument. At inception the discount is |
recognised as a capital contribution within Equity. As the discount unwinds it is charged against the |
profit and loss. An equivalent transfer is made annually between the Capital Contribution Reserve and |
the Profit and Loss reserve. |
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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 Profit and Loss Account. |
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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 |
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Financial assets and liabilities are offset and the net amount reported in the Balance sheet 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. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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Axon Automotive Limited (Registered number: 05653157) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 September 2017 |
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4. | INTANGIBLE FIXED ASSETS |
Research |
and |
development |
costs |
£ |
COST |
At 1 October 2016 |
and 30 September 2017 |
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AMORTISATION |
Amortisation for year |
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At 30 September 2017 |
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NET BOOK VALUE |
At 30 September 2017 |
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At 30 September 2016 |
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5. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 October 2016 |
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Additions |
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At 30 September 2017 |
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DEPRECIATION |
At 1 October 2016 |
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Charge for year |
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At 30 September 2017 |
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NET BOOK VALUE |
At 30 September 2017 |
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At 30 September 2016 |
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Axon Automotive Limited (Registered number: 05653157) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 September 2017 |
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5. | TANGIBLE FIXED ASSETS - continued |
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Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 October 2016 |
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Additions |
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At 30 September 2017 |
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DEPRECIATION |
At 1 October 2016 |
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Charge for year |
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At 30 September 2017 |
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NET BOOK VALUE |
At 30 September 2017 |
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At 30 September 2016 |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2017 | 2016 |
£ | £ |
Trade debtors |
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Doubtful debt provision | - | (8,700 | ) |
Other debtors |
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VAT |
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Accrued income |
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Prepayments |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2017 | 2016 |
£ | £ |
Other loans (see note 9) |
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Trade creditors |
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Amounts owed to group undertakings |
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Social security and other taxes |
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Other creditors |
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Directors' loan accounts | 32,823 | 32,823 |
Accrued expenses |
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8. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2017 | 2016 |
£ | £ |
Other loans (see note 9) |
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Axon Automotive Limited (Registered number: 05653157) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 September 2017 |
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9. | LOANS |
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Other Loans includes:- |
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An interest free loan from Dr S Cousins. The total amount outstanding is £172,300 (2016 - £191,300) |
(It has been agreed that this loan will be repaid at a rate of £2,000 per month (previously £1,000 per |
month)). Under FRS102, this loan is included in the financial statements at its amortised cost and the |
difference is charged as interest over the life of the loan. The amortised total balance outstanding at |
the year end was £112,811(2016 - 150,429). |
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Interest bearing debenture loan of £58,942 (2016 - £94,479) from Mr Evans. This loan carries interest |
at 6% per annum with effect from 01/10/09. The loan is being repaid at £4,000 per month (previously |
£2,000 per month). The interest accruing is repayable when the loan is repaid. |
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10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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11. | RELATED PARTY DISCLOSURES |
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Composites UK Ltd, a company in which Mr C.J. Taylor is also a director, has traded at arms length |
with the company during the year.Composites UK Ltd invoiced Axon Automotive Ltd £75 (2016: £255) |
for services provided. The balance owing at year end is £Nil (2016: £Nil). |
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Included in other creditors payable within one year is a loan to a Director amounting to £32,823 (2016 |
£32,823) which is interest free and repayable at the discretion of the company. |
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12. | ULTIMATE CONTROLLING PARTY |
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The company is under the control of FAR-UK Ltd by virtue of its 100% interest in the A voting share |
capital, and of Mr Holte Evans, by virtue of his debentures over the fixed and floating assets of the |
company. |
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On 24th October 2017, the 100% interest in the A voting shares of Axon Automotive Limited was |
acquired by Axon Composite Materials Limited . Since the change in ownership, the ultimate |
controlling party is Bawtry Investments Limited, High Street, Autherfield, Doncaster. |
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13. | GOING CONCERN |
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The company is reliant on the continued financial support of the directors and external investors. All |
parties have expressed their willingness to continue to support the company for a period of not less |
than 12 months from the balance sheet date. |
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14. | DEBENTURES |
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On 29 December 2008 the company issued a debenture to Ruslan Anthony Holte Evans to cover all |
liabilities, interest, costs and expenses due to the debenture holder. The debenture entitles the holder |
to a first charge over all fixed and floating assets of the company. This debenture was registered with |
Companies House on 5 January 2009 with reference "Charge 1". |
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These debentures give the holder a first and second charge over all fixed and floating assets. |
The company has agreed to repay the loan at £4,000pm previously £2,000 pm. |
Axon Automotive Limited (Registered number: 05653157) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 September 2017 |
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15. | FIRST YEAR ADOPTION |
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FRS102 requires loans which are interest free to be measured at amortised cost. |
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The initial difference on transition is treated as a capital contribution and interest charged over the life |
of the loan. |