Company Registration No. 08871283 (England and Wales)
FLEXIMIZE SERVICES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
PAGES FOR FILING WITH REGISTRAR
FLEXIMIZE SERVICES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
FLEXIMIZE SERVICES LIMITED
BALANCE SHEET
AS AT 31 JULY 2019
31 July 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
6,621
5,748
Current assets
Debtors
4
244,436
45,796
Cash at bank and in hand
3,083
6,009
247,519
51,805
Creditors: amounts falling due within one year
5
(7,637,543)
(5,413,644)
Net current liabilities
(7,390,024)
(5,361,839)
Total assets less current liabilities
(7,383,403)
(5,356,091)
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
(7,383,404)
(5,356,092)
Total equity
(7,383,403)
(5,356,091)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 July 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 24 April 2020 and are signed on its behalf by:
D O'Sullivan
Director
Company Registration No. 08871283
FLEXIMIZE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
- 2 -
1
Accounting policies
Company information
Fleximize Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is
Holbrook House, 51 John Street, Ipswich, Suffolk, IP3 0AH.
1.1
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The company is a service company for the Alterium group of companies. Despite the loss making position of the group, the directors have prepared the financial statements on a going concern basis, which they believe to be appropriate for the reasons set out below
true
:
There has been additional funding agreed post year end for the group, which is detailed in the post balance sheet events note and the directors are in advanced discussions with another lender to provide an additional credit line.
In addition to this a substantial portion of spending within the group is discretionary and entirely within the control of the directors which allows the loan book to be maintained at its current level without the need for additional funding.
Since the year end the UK, and the rest of the world, has been struck by the Covid-19 pandemic. The impact of the coronavirus will have a very significant effect on the economy and potentially the business during 2020. The directors have prepared revised cashflow forecasts which anticipate that the group will be able continue to meet it’s liabilities as they fall due. However, because not all future events or conditions can be predicted, it is not possible to guarantee the group’s and the company’s ability to continue as a going concern. The future of the world economy is unclear at this present time due to the ongoing COVID-19 outbreak and it is therefore difficult to evaluate all of the potential implications on the company’s trade, customers, suppliers and the wider economy.
1.3
Tangible fixed assets
Depreciation is provided to write off the cost less the estimated residual value of tangible fixed assets by equal instalments over their estimated useful economic lives as follows:
Other fixed assets
4 years
Office equipment
3 years
Computer equipment
2 years
1.4
Impairment of fixed assets
The carrying amount of the Group’s assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the fixed asset may not be recoverable. If any such indication exists, the assets’ recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.
FLEXIMIZE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
1
Accounting policies
(Continued)
- 3 -
1.5
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.
1.6
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.
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.
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.
1.7
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.
1.8
Taxation
FLEXIMIZE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
1
Accounting policies
(Continued)
- 4 -
Current tax
The charge for taxation is based on the profit for the period and takes into account taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes.
Deferred tax
Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes which have arisen but not reversed by the balance sheet date, except as otherwise required by the UK Generally Accepted Accounting Practice applicable to Smaller Entities.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
1.9
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 42 (2018 - 40).
3
Tangible fixed assets
Other fixed assets
Office equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 August 2018
563
10,560
10,224
21,347
Additions
398
3,226
1,897
5,521
At 31 July 2019
961
13,786
12,121
26,868
Depreciation
At 1 August 2018
47
6,610
8,942
15,599
Depreciation charged in the year
315
2,721
1,612
4,648
At 31 July 2019
362
9,331
10,554
20,247
Carrying amount
At 31 July 2019
599
4,455
1,567
6,621
At 31 July 2018
516
3,950
1,282
5,748
FLEXIMIZE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
- 5 -
4
Debtors
2019
2018
Amounts falling due within one year:
£
£
Corporation tax recoverable
176,976
-
Other debtors
67,460
45,796
244,436
45,796
5
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
20,473
53,658
Amounts owed to group undertakings
7,550,917
5,302,565
Taxation and social security
45,564
38,938
Other creditors
20,589
18,483
7,637,543
5,413,644
6
Contingent liabilities
The company has entered into a cross guarantee with it's parent company and fellow subsidiary companies in respect of third party borrowing arrangements entered into by the group.
7
Events after the reporting date
On 20th March 2020, the senior facility with Hadrian’s Wall Capital Ltd made available to the parent company, was replaced with a senior facility of £40.5m of which £22.8m has been drawn. The parent companies OpCo loan facility has been agreed for £9.5m of which £4.7m
has been drawn.
Since the year end, the UK, and the whole world, has been struck by the Covid 19 pandemic. This does not have an effect on the financial position shown by these accounts.
8
Related party transactions
The company has taken advantage of the exemption to not disclose the related party transactions as the subsidiaries are wholly owned by the parent company.
9
Parent company
The company is a wholly-owned subsidiary of Alterium Limited, a company registered in England and Wales (registration number 08621989).