Company registration number 07370013 (England and Wales)
8POINT8 SUPPORT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2022
8POINT8 SUPPORT LIMITED
COMPANY INFORMATION
Directors
Mr P J G Dickinson
(Appointed 3 May 2022)
Mr M R Peacock
(Appointed 3 May 2022)
Secretary
Mitie Company Secretarial Services Limited
Company number
07370013
Registered office
Level 12 The Shard
32 London Bridge Street
London
SE1 9SG
Auditor
Azets Audit Services Limited
Triune Court
Monks Cross Drive
York
YO32 9GZ
8POINT8 SUPPORT LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report to the members of 8Point8 Support Limited
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 30
8POINT8 SUPPORT LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2022
- 1 -
The directors present the strategic report for the period ended 31 March 2022.
Fair review of the business
8point8 Support Limited operates in the mobile telecoms
and
digital out of home ("DOOH") industries, alongside some facilities management and renewable energy projects delivered over and above the main industries.
Our business employs around 120 directly employed personnel, and the turnover is £9,150,188 for the 6 month period ended 31 March 2022 (6 month period ended 30 September 2021 - £8,508,875).
We are a services business which provides design and construction of critical telecoms and digital infrastructure for blue chip clients such as Telefonica, JCDecaux, Global, Ericsson and Wireless Infrastructure Group.
The financial performance of the business is led by our Finance Director who supports and challenges the business units, similarly the Divisional Directors will support and challenge the commercial/financial controls within the business units to ensure compliance and overall performance is achieved.
During the
6 month period
, we have experienced solid growth and the overall performance is good. The company was acquired by Mitie Technical Facilities Management Limited in May 2022 and as a result the accrued income provisioning estimate policy has been aligned to that of the Mitie Group, resulting in an exceptional charge to the statement of comprehensive income during the period of £1,396,658.
We have made investments in staff and technology to ensure we are ready for 5G projects, vendor swap programmes, and Digital out of Home growth markets. We have invested in key staff, and continue to look for better ways to improve our business and order to cash timeframes.
There will be
continued development of increases in 5G infrastructure build through Operators, Site owners and Vendors
into
the 2024 financial year
.
Despite a slower than expected 2023 financial year
so far, we should see growth in DOOH installations through the main two media companies (34% and 33% UK Market share respectfully) next FY.
Improvements made in the last 6 months
Procurement savings – rates and payment terms
.
Tighter controls with budgets and final accounts – commercial and operational teams
.
Improved cash collection – new credit control process and staff, and consistent approach.
Future improvements
Improvement to WIP reduction – improvement needed to close-out aged WIP
.
New structure and strategic hires –
m
ore clarity and ownership
.
New IT system – improved scheduling efficiency, fully integrated and improved reporting.
KPI’s on final account clearance and variance to budget –
c
ommercial and operational staff. Failings from previous period require addressing.
New opportunities
Telecoms Site Owners/Operators and Vendors –
n
ew business and telecoms in general improved rates, and volumes from the 5G rollout
.
8POINT8 SUPPORT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
- 2 -
KPI's and New Process
In relation to operational/performance KPI’s, we are all working to a 12
month plan where we are implementing KPI’s for the following areas.
-
Health & Safety – Zero Harm
-
Financial Performance – P&L/Cashflow/WIP/Debtor Days
-
HR - Development of People –
s
uccession planning
-
Innovation/R&D –
n
ew IT System development and implementation
-
Operational Performance –
R
ight First Time/
u
tilisation
-
Strategy –
n
ew
m
arkets/
n
ew
c
ustomers
In terms of performance at period ended September 2021 compared with period ended March 2022, concentration levels within the debtor book remains strong with Ericsson added as a new major client. The cash levels and overall financials have benefitted from a strong half year performance. 5G roll-out will continue to provide consisten
cy
throughout this year and includes a much better platform for the delivery of increased volumes into the 2023 financial year
.
Risk management
Risk management is covered during our monthly board meetings, and includes financial risk, cashflow forecasts with KPI’s for each area of the business, and market drivers which may affect our ability to deliver for our customers.
Examples of risks and how we have mitigated, or avoided the risks in the recent meetings include the below examples:
Loss of customer
-
h
igh levels of concentration of a single customer within the debtor book, similar to the Nokia reliance in the 2019 financial year. We have diluted the risk of this with new customers within the telecoms industry and entered new markets to provide a more stable customer base. Previously we had concentration of 65%, whereas current levels are max
imum
30% and forecasts reducing to 20%.
Aggressive/Risky Strategies
–
w
e have not planned anything too aggressive, the launch of the new ERP system to support a steady increase in revenues and EBITDA over the next three years.
Supply chain risks
– we have adopted a similar strategy to the concentration levels without our debtor book. We have three or four key suppliers across our supply chain to ensure we have adequate provision of supply.
Cashflow
– we use financial cashflow reporting to identify short
and long-term gaps and mitigate by leveraging supply chain with agreed extended terms but expect these to be resolved with cash generation improved rates, performance and the 5G rollout.
Risks over non utilisation
– we have increased our subcontractor base for electrical, rigging and civils to ensure we can address peaks and troughs with little impact to the
P&L.
Additional information
Additional information relating to our business and potential impacts are reduced through policy, process and planning
.
Environmental impact
We are a 14001 certificate holder, and operate as a responsible employer to reduce our environmental impact. We have invested in a new business management tool,
D
ime
S
cheduler
,
to help further reduce our environmental impact through efficient planning and mileage reduction.
8POINT8 SUPPORT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
- 3 -
Equal Rights
The Company is committed to promoting equality of opportunity for all staff and job applicants. We aim to create a working environment in which all individuals can make best use of their skills, free from discrimination or harassment, and in which all decisions are based on experience, abilities and qualifications.
We do not discriminate against staff on the basis of age, disability, gender reassignment, marital or civil partner status, pregnancy or maternity, race, (including colour, nationality, ethnic or national origin and caste), religion or belief, sex or sexual orientation These are known as protected characteristics.
The principles of non-discrimination and equality of opportunity also apply to the way in which staff treat visitors, clients, customers, suppliers and former staff members.
Modern slavery
8point8 Support Limited strictly prohibits the use of modern slavery and human trafficking in our operations and supply chain. We have and will continue to be committed to implementing systems and controls aimed at ensuring that modern slavery is not taking place anywhere within our organisation or in any of our supply chains. We expect that our suppliers will hold their own suppliers to the same high standards.
Mr M R Peacock
Director
30 March 2023
8POINT8 SUPPORT LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2022
- 4 -
The directors present their annual report and financial statements for the period ended 31 March 2022.
Principal activities
The principal activity of the company continued to be that of wireless telecommunications.
The financial statements are for the 6 month period ended 31 March 2022.
Results and dividends
The results for the period are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr M Debnam
(Resigned 3 May 2022)
Mr K M Hampson
(Resigned 3 May 2022)
Mr D S Storer
(Resigned 3 May 2022)
Mr P J G Dickinson
(Appointed 3 May 2022)
Mr M R Peacock
(Appointed 3 May 2022)
Auditor
In accordance with the company's articles, a resolution proposing that Azets Audit Services Limited be reappointed as auditor of the company will be put at a Board Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
Mr M R Peacock
Director
30 March 2023
8POINT8 SUPPORT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 MARCH 2022
- 5 -
The directors are responsible for preparing the annual 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;
-
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.
8POINT8 SUPPORT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF 8POINT8 SUPPORT LIMITED
- 6 -
Opinion
We have audited the financial statements of 8Point8 Support Limited (the 'company') for the period ended 31 March 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 31 March 2022 and of its loss for the period then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
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.
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 our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial period 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.
8POINT8 SUPPORT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF 8POINT8 SUPPORT LIMITED
- 7 -
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 identifie
d
material misstatements in the strategic report or the directors'
r
eport
. We have nothing to report in respect of the following matters in relation to which 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
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 directors'
r
esponsibilities
s
tatement, 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 is 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.
Auditor's 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
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
8POINT8 SUPPORT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF 8POINT8 SUPPORT LIMITED
- 8 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
-
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
-
Reviewing minutes of meetings of those charged with governance;
-
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
-
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
-
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Martin Davey (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
30 March 2023
Chartered Accountants
Statutory Auditor
Triune Court
Monks Cross Drive
York
YO32 9GZ
8POINT8 SUPPORT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2022
- 9 -
Period
Period
ended
ended
31 March
30 September
2022
2021
Notes
£
£
Turnover
3
9,150,188
8,508,875
Cost of sales (includes exceptional items of £1,396,658 (30 September 2021 - £nil))
(8,963,188)
(7,038,574)
Gross profit
187,000
1,470,301
Administrative expenses
(1,094,015)
(1,047,076)
Other operating income
201,042
Operating (loss)/profit
5
(907,015)
624,267
Interest receivable and similar income
7
16,700
8,227
Interest payable and similar expenses
8
(87,069)
(50,443)
Loss on investment assets
(5,000)
(Loss)/profit before taxation
(977,384)
577,051
Tax on (loss)/profit
9
266,700
(115,000)
(Loss)/profit for the financial period
(710,684)
462,051
The
statement of comprehensive income
has been prepared on the basis that all operations are continuing operations
.
The notes on pages 13 to 30 form part of these financial statements.
8POINT8 SUPPORT LIMITED
BALANCE SHEET
AS AT
31 MARCH 2022
31 March 2022
- 10 -
31 March
30 September
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
10
264,359
294,520
Tangible assets
11
205,528
213,722
Investments
12
49,700
87,000
519,587
595,242
Current assets
Stocks
13
694,711
540,621
Debtors
14
6,552,026
6,034,748
Cash at bank and in hand
129,808
1,045,637
7,376,545
7,621,006
Creditors: amounts falling due within one year
17
(8,238,443)
(7,790,541)
Net current liabilities
(861,898)
(169,535)
Total assets less current liabilities
(342,311)
425,707
Creditors: amounts falling due after more than one year
18
(142,751)
(150,085)
Provisions for liabilities
Deferred tax liability
19
50,000
-
(50,000)
Net (liabilities)/assets
(485,062)
225,622
Capital and reserves
Called up share capital
21
200
200
Profit and loss reserves
(485,262)
225,422
Total equity
(485,062)
225,622
The notes on pages 13 to 30 form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 30 March 2023 and are signed on its behalf by:
Mr M R Peacock
Director
Company Registration No. 07370013
8POINT8 SUPPORT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2022
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2021
200
(236,629)
(236,429)
Period ended 30 September 2021:
Profit and total comprehensive income for the period
-
462,051
462,051
Balance at 30 September 2021
200
225,422
225,622
Period ended 31 March 2022:
Loss and total comprehensive income for the period
-
(710,684)
(710,684)
Balance at 31 March 2022
200
(485,262)
(485,062)
The notes on pages 13 to 30 form part of these financial statements.
8POINT8 SUPPORT LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2022
- 12 -
31 March 2022
30 September 2021
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
27
(1,073,960)
(2,401,314)
Interest paid
(87,069)
(50,443)
Net cash outflow from operating activities
(1,161,029)
(2,451,757)
Investing activities
Purchase of intangible assets
(15,782)
Purchase of tangible fixed assets
(13,544)
(32,001)
Proceeds on disposal of tangible fixed assets
25,981
Proceeds on disposal of investments
-
12,500
Interest received
16,700
8,227
Net cash generated from/(used in) investing activities
29,137
(27,056)
Financing activities
Repayment of borrowings
(37,571)
(35,793)
Payment of finance leases obligations
(82,371)
(117,365)
Net cash used in financing activities
(119,942)
(153,158)
Net decrease in cash and cash equivalents
(1,251,834)
(2,631,971)
Cash and cash equivalents at beginning of period
1,025,637
3,657,608
Cash and cash equivalents at end of period
(226,197)
1,025,637
Relating to:
Cash at bank and in hand
129,808
1,045,637
Bank overdrafts included in creditors payable within one year
(356,005)
(20,000)
The notes on pages 13 to 30 form part of these financial statements.
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2022
- 13 -
1
Accounting policies
Company information
8Point8 Support Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Level 12 The Shard, 32 London Bridge Street, London, SE1 9SG.
1.1
Reporting period
The financial statements are for the 6 month period ended 31 March 2022. The prior period also related to a 6 month period, and so the results are comparable.
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.3
Going concern
At the time of approving the financial statements, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Directors have also received a letter of support from the directors of Mitie Group plc to confirm the provision of adequate financial resources to the Company for a period of not less than twelve months from the date of approval of the Company’s statutory financial statements for the 6 month period ended 31 March 2022 to ensure that the Company can meet its liabilities as they fall due. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.
true
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 14 -
1.5
Exceptional items
In the financial statements, the Company has elected to provide some further disclosures and performance measures, reported as ‘Exceptional items’, in order to present its financial results in a way that demonstrates the underlying performance of the business. In the period under review, the Company has applied the Mitie Group policy for provisioning aged work-in-progress balances as at 31 March 2022. This has resulted in an exceptional charge of £1,396,658 (30 September 2021 - £nil) to the cost of sales line in the statement of comprehensive income in this period as referenced in note 2 as a source of key estimation uncertainty.
Exceptional items are items of financial performance which management believes should be separately identified within the income statement to assist in understanding the underlying financial performance achieved by the Company. The Company separately reports items that are material, unusual and/or non-recurring in nature as Exceptional items.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
12.5% - 20% straight line
1.7
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and equipment
17% - 33% straight line
Fixtures and fittings
20% straight line
Computers
20 - 50% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.8
Fixed asset investments
Fixed asset investments in a number of motor vehicles and bikes
are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 15 -
1.9
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.11
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.12
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally 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.
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 16 -
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 17 -
1.13
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the
period
. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 18 -
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.18
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.19
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Recognition of profit on long term contracts
The company undertakes a number of contracts which run over an extended period on which revenue and profits are recognised as disclosed in note 1.
4
on which there is a key judgment as to the stage of completion. This stage is identified by reference to the total costs attributable to a contract, with budgets being created at the outset based on management experience.
Recoverability of amounts owed by contract customers
The company was acquired by Mitie Technical Facilities Management Limited in May 2022
and as a result the accrued income provisioning policy has been aligned to that of the Mitie Group. A provision has been applied to accrued income based on ageing, which in management's judgement reflects the risk of recoverability of certain balances contained within accrued income as at 31 March 2022. This has resulted in an exceptional charge to the statement of comprehensive income during the period of £1,396,658.
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
- 19 -
3
Turnover and other revenue
Period ended 31 March 2022
Period ended 30 September 2021
£
£
Turnover analysed by class of business
Wireless telecommunication services
9,150,188
8,508,875
Period ended 31 March 2022
Period ended 30 September 2021
£
£
Turnover analysed by geographical market
United Kingdom
9,150,188
8,508,875
Period ended 31 March 2022
Period ended 30 September 2021
£
£
Other revenue
Interest income
16,700
8,227
Grants received
201,042
4
Exceptional item
2022
2021
£
£
Expenditure
Exceptional item - Cost of sales provision
1,396,658
-
5
Operating (loss)/profit
Period ended 31 March 2022
Period ended 30 September 2021
Operating (loss)/profit for the period is stated after charging/(crediting):
£
£
Government grants
(201,042)
Fees payable to the company's auditor for the audit of the company's financial statements
27,800
19,000
Depreciation of owned tangible fixed assets
58,235
46,503
Depreciation of tangible fixed assets held under finance leases
16,708
31,719
(Profit)/loss on disposal of tangible fixed assets
(3,273)
12,002
Impairment of fixed asset investments
37,300
Amortisation of intangible assets
30,161
33,225
(Profit)/loss on disposal of intangible assets
72,383
Operating lease charges
34,051
45,774
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
- 20 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
Period ended 31 March 2022
Period ended 30 September 2021
Number
Number
Operating activities
85
80
Management and administration
30
28
Total
115
108
Their aggregate remuneration comprised:
Period ended 31 March 2022
Period ended 30 September 2021
£
£
Wages and salaries
2,275,651
2,258,654
Social security costs
234,975
232,344
Pension costs
45,305
44,479
2,555,931
2,535,477
7
Interest receivable and similar income
Period ended 31 March 2022
Period ended 30 September 2021
£
£
Interest income
Other interest income
16,700
8,227
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
- 21 -
8
Interest payable and similar expenses
Period ended 31 March 2022
Period ended 30 September 2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
12,965
4,713
Other interest on financial liabilities
70,503
44,165
83,468
48,878
Other finance costs:
Interest on finance leases and hire purchase contracts
2,730
762
Other interest
871
803
87,069
50,443
9
Taxation
Period ended 31 March 2022
Period ended 30 September 2021
£
£
Current tax
UK corporation tax on profits for the current period
110,000
120,000
Deferred tax
Origination and reversal of timing differences
(376,700)
(17,000)
Changes in tax rates
12,000
Total deferred tax
(376,700)
(5,000)
Total tax (credit)/charge
(266,700)
115,000
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
9
Taxation
(Continued)
- 22 -
The actual (credit)/charge for the period can be reconciled to the expected (credit)/charge for the period based on the profit or loss and the standard rate of tax as follows:
Period ended 31 March 2022
Period ended 30 September 2021
£
£
(Loss)/profit before taxation
(977,384)
577,051
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (30 September 2021: 19.00%)
(185,703)
109,640
Tax effect of expenses that are not deductible in determining taxable profit
4,344
(6,640)
Tax effect of income not taxable in determining taxable profit
(231)
Effect of change in corporation tax rate
(83,755)
12,000
Depreciation on assets not qualifying for tax allowances
4,990
Effect of revaluations of investments
7,087
Other tax adjustments
(13,432)
Taxation (credit)/charge for the period
(266,700)
115,000
10
Intangible fixed assets
Software
£
Cost
At 1 October 2021 and 31 March 2022
417,922
Amortisation and impairment
At 1 October 2021
123,402
Amortisation charged for the period
30,161
At 31 March 2022
153,563
Carrying amount
At 31 March 2022
264,359
At 30 September 2021
294,520
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
- 23 -
11
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2021
90,584
50,020
182,431
404,496
727,531
Additions
2,824
6,043
80,590
89,457
Disposals
(99,792)
(99,792)
At 31 March 2022
93,408
50,020
188,474
385,294
717,196
Depreciation and impairment
At 1 October 2021
37,063
44,162
149,842
282,742
513,809
Depreciation charged in the period
10,328
3,050
22,126
39,439
74,943
Eliminated in respect of disposals
(77,084)
(77,084)
At 31 March 2022
47,391
47,212
171,968
245,097
511,668
Carrying amount
At 31 March 2022
46,017
2,808
16,506
140,197
205,528
At 30 September 2021
53,521
5,858
32,589
121,754
213,722
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
31 March 2022
30 September 2021
£
£
Motor vehicles
104,518
112,726
12
Fixed asset investments
31 March 2022
30 September 2021
£
£
Unlisted investments
49,700
87,000
Investments represent specialist motor vehicles and other similar assets held for their appreciation in value.
Included in the above are assets with a value of £49,700 (30 Sep
tember
20
21 - £87,000) held under hire purchase contracts.
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
12
Fixed asset investments
(Continued)
- 24 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 October 2021
87,000
Impairment
(37,300)
At 31 March 2022
49,700
Carrying amount
At 31 March 2022
49,700
At 30 September 2021
87,000
13
Stocks
31 March 2022
30 September 2021
£
£
Raw materials and consumables
694,711
540,621
14
Debtors
31 March 2022
30 September 2021
Amounts falling due within one year:
£
£
Trade debtors
2,037,014
1,140,771
Gross amounts owed by contract customers
1,845,338
2,641,938
Corporation tax recoverable
404,000
404,000
Other debtors
1,397,725
1,423,670
Prepayments and accrued income
541,249
424,369
6,225,326
6,034,748
2022
2021
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 19)
326,700
Total debtors
6,552,026
6,034,748
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
- 25 -
15
Loans and overdrafts
31 March 2022
30 September 2021
£
£
Bank loans
356,005
20,000
Other loans
183,366
220,937
539,371
240,937
Payable within one year
436,485
96,922
Payable after one year
102,886
144,015
Within bank loans is an amount of £
356,005
(30
September
2021 - £
20,000
) due within one year relating to an invoice financing facility.
Other loans includes an amount of £
183,366
(30
September
2021 - £2
20,937
) relating to borrowings due for repayment by instalments by May 2024.
Interest is charged at a rate of 8.9%.
16
Finance lease obligations
31 March 2022
30 September 2021
Future minimum lease payments due under finance leases:
£
£
Within one year
43,616
81,637
In two to five years
41,887
6,091
85,503
87,728
Less: future finance charges
(5,863)
(1,630)
79,640
86,098
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Finance leases are secured over the assets to which they relate.
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
- 26 -
17
Creditors: amounts falling due within one year
31 March 2022
30 September 2021
Notes
£
£
Bank loans and overdrafts
15
356,005
20,000
Obligations under finance leases
16
39,775
80,028
Other borrowings
15
80,480
76,922
Payments received on account
1,578,760
3,157,135
Trade creditors
2,336,814
1,671,322
Corporation tax
444,000
334,000
Other taxation and social security
1,509,127
1,752,802
Other creditors
1,427,898
123,136
Accruals and deferred income
465,584
575,196
8,238,443
7,790,541
The security relating to bank loans, finance leases and other borrowings is detailed on notes
15 and 16.
18
Creditors: amounts falling due after more than one year
31 March 2022
30 September 2021
Notes
£
£
Obligations under finance leases
16
39,865
6,070
Other borrowings
15
102,886
144,015
142,751
150,085
The security relating to
finance leases and other borrowings is detailed on notes
15 and 16.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
31 March 2022
30 September 2021
2022
2021
Balances:
£
£
£
£
Accelerated capital allowances
-
50,000
-
-
Provisions
-
-
326,700
-
-
50,000
326,700
-
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
19
Deferred taxation
(Continued)
- 27 -
31 March 2022
Movements in the period:
£
Liability at 1 October 2021
50,000
Credit to profit or loss
(376,700)
Asset at 31 March 2022
(326,700)
20
Retirement benefit schemes
31 March 2022
30 September 2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
45,305
44,479
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
At
the period end
, unpaid pension contributions totalling £1
7,289
(30
September
2021 - £1
8,033
) were included within other creditors.
21
Share capital
31 March 2022
30 September 2021
31 March 2022
30 September 2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
190
190
190
190
Ordinary B shares of £1 each
10
10
10
10
200
200
200
200
All shares have equal voting, dividend and capital rights. Restrictions exist for Ordinary B shares in relation to the right to transfer shares to third parties.
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
31 March 2022
30 September 2021
£
£
Within one year
17,554
52,611
Between two and five years
21,884
21,973
39,438
74,584
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
- 28 -
23
Events after the reporting date
The company was acquired by Mitie Technical Facilities Management Limited in May 2022
.
24
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
31 March 2022
30 Septmber 2021
£
£
Aggregate compensation
294,923
324,582
Transactions with related parties
During the period the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
31 March 2022
30 Septmber 2021
31 March 2022
30 Septmber 2021
£
£
£
£
Companies under common control
57,816
61,841
555,963
385,209
31 March 2022
30 Septmber 2021
Amounts due to related parties
£
£
Companies under common control
190,106
260,403
The following amounts were outstanding at the reporting end date:
31 March 2022
30 Septmber 2021
Amounts due from related parties
£
£
Companies under common control
17,858
692,677
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
- 29 -
25
Directors' transactions
The following amounts are included in other debtors at the period end.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Mr K M Hampson -
2.50
272,230
1,194
6,826
(390)
279,860
Mr M Debnam -
2.50
268,325
1,194
6,728
(390)
275,857
Mr D S Storer -
2.50
125,840
-
3,146
-
128,986
666,395
2,388
16,700
(780)
684,703
These loan receivable balances
are
repayable on demand
and have been
settled subsequent to the period end date on acquisition of the
c
ompany’s
s
hare capital by Mitie Group P
LC
, see note
23.
26
Directors' remuneration
31 March 2022
30 September 2021
£
£
Remuneration for qualifying services
124,213
132,855
Company pension contributions to defined contribution schemes
1,977
1,973
126,190
134,828
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (30 September 2021 - 3).
8POINT8 SUPPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
- 30 -
27
Cash absorbed by operations
31 March 2022
30 September 2021
£
£
(Loss)/profit for the period after tax
(710,684)
462,051
Adjustments for:
Taxation (credited)/charged
(266,700)
115,000
Finance costs
87,069
50,443
Investment income
(16,700)
(8,227)
(Gain)/loss on disposal of tangible fixed assets
(3,273)
12,002
Impairment of fixed asset investments
37,300
(Gain)/loss on disposal of intangible assets
72,383
Amortisation and impairment of intangible assets
30,161
33,225
Depreciation and impairment of tangible fixed assets
74,943
78,222
(Gain)/loss on sale of investments
-
5,000
Movements in working capital:
Increase in stocks
(154,090)
(264,500)
Increase in debtors
(190,578)
(935,853)
Increase/(decrease) in creditors
38,592
(1,409,529)
Decrease in deferred income
-
(611,531)
Cash absorbed by operations
(1,073,960)
(2,401,314)
28
Analysis of changes in net funds/(debt)
1 October 2021
Cash flows
New finance leases
31 March 2022
£
£
£
£
Cash at bank and in hand
1,045,637
(915,829)
-
129,808
Bank overdrafts
(20,000)
(336,005)
-
(356,005)
1,025,637
(1,251,834)
(226,197)
Borrowings excluding overdrafts
(220,937)
37,571
-
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