AFFINITY_FLOORING_LIMITED - Accounts

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Affinity Flooring Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Bickenhall Mansions, Bickenhall Street, London, W1U 6BP.

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 amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.

The company has taken advantage of exemptions available to subsidiaries whose results are consolidated into publicly available financial statements. As such, the company will not produce a cash flow statement.

The company remains solidly profitable, has £1.8 million cash at bank and no external debt at the date of signing these financial statements. The directors are confident, following a review of the company's cash flow projections over the next twelve months that the company has sufficient resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the company's financial statements.

Turnover represents the total invoice value, excluding value added tax, of sales made during the year and derives from the provision of goods and services falling within the company's ordinary activities.

In respect of services where a project has only been partially completed at the reporting date, turnover represents the value of those services provided to date based on the proportion of the total expected consideration at completion. Where amounts are invoiced in advance of services provided, such amounts are recorded as deferred income. Similarly, where services are invoiced in arrears, such amounts are recorded as accrued income and included within debtors falling due within one year.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation 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:

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.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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 (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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 (or cash-generating unit) 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 (or cash-generating unit) 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.

Work in progress is valued at the lower of cost and net realisable value.

Long term contracts are assessed on a contract by contract basis and are reflected in the income statement by recording turnover and related costs as contract activity progresses. Turnover is ascertained in a manner appropriate to the stage of completion of the contract, and credit taken for profit earned to date when the outcome of the contract can be assessed with reasonable certainty. The amount by which turnover exceeds payments on account is classified as accrued income and included in debtors; to the extent that payments on account exceed relevant turnover and work in progress balances, the excess is included as deferred income. The amount of work in progress at cost net of amounts transferred to cost of sales, less provision for foreseeable losses and payments on account not matched with turnover, is included within stocks.

Cash at bank and in hand 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.

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 statement of financial position 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, 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.

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, 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 payments 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. Amounts 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.

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.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 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 income statement, 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.

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.

Payments to defined contribution retirement benefit schemes are charged as an expense in the period to which they relate.

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 leases asset are consumed.

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.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The estimation techniques used for revenue and profit recognition in respect of long term contracts require forecasts to be made of the outcome of such contracts which require assessments and judgements to be made on the recovery of pre-contract costs, changes in the scope of work, contract programmes, maintenance and defects liabilities, changes in costs and stages of completion.

The recoverability of trade and other receivables is regularly reviewed in the light of available economic information specific to each receivable and provisions are recognised for balances considered to be irrecoverable.

Provisions are liabilities of uncertain timing or amount and therefore in making a reliable estimate of the amount and timing of liabilities judgement is applied and re-evaluated at each reporting date.

The average monthly number of persons (including directors) employed by the company during the year was:

The above financial assets are measured at amortised cost.

The above financial liabilities are measured at amortised cost.

There are no loans outstanding as at 31 May 2019. As at 31 May 2018, there were three separate loans with The Stagshead Trust, a pension fund in which G Andrew, a director and ultimate controlling party, is a beneficiary. The first loan had a balance of £28,643 and was repayable by 31 July 2018. The second loan had a balance of £82,253 and was repayable in equal instalments by 17 December 2019. The third loan had a balance of £88,188 and was repayable in equal instalments by 16 August 2022. Interest was charged in respect of the loans at 5% per annum and accrued daily. The loans were each secured by a debenture, providing a fixed and floating charge over the assets of the borrower. The loans were repaid in full on 15 August 2018.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

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:

Vensyn Group Limited

100% of the shares in the company are owned by Vensyn Group Limited.

During the year, the company was charged management expenses totalling £148,686 (2018: £54,730) by Vensyn Group Limited. In addition, the company was charged for Corporation Tax group relief by Vensyn Group Limited amounting to £102,270 (2018: £Nil). At the reporting date £135,754 (2018: £80,771) was due to Vensyn Group Limited.

Oktra Reach Limited

80% of the shares of Oktra Reach are owned by Vensyn Group Limited.

During the year, the company provided services totalling £340,368 (2018: £420,280) to Oktra Reach Limited and purchased services totalling £Nil (2018: £2,047) from Oktra Reach Limited. In addition, the company made a charge for corporation tax group relief amounting to £Nil (2018: £26,067). At the reporting date £24,007 (2018: £54,194) was due from Oktra Reach Limited.

Oktra North Limited

80% of the shares of Oktra North Limited are owned by Vensyn Group Limited.

During the year, the company provided services totalling £30,333 (2018: £140,035) to Oktra North Limited. In addition, the company made a charge for corporation tax group relief amounting to £Nil (2018: £93,067). At the reporting date, £35,892 (2018: £209,940) was due from Oktra North Limited.

Oktra Limited

84% of the shares of Oktra Limited are owned by Vensyn Group Limited.

During the year, the company provided services totalling £2,697,499 (2018: £2,621,314) to Oktra Limited (Oktra). In addition the company was recharged expenses totalling £153,151 (2018: £207,968). At the reporting date, the company was owed £476,164 by Oktra Limited (2018: owed £1,275,301 to Oktra Limited).

Oktra South Limited

85% of the shares of Oktra South Limited are owned by Vensyn Group Limited.

During the year, the company provided services totalling £143,358 (2018: £Nil) to Oktra South Limited. At the reporting date £38,071 (2018: £Nil) was due from Oktra South Limited.

The Stagshead Trust

The company had three loans from the Stagshead Trust, a pension fund of which Mr G Andrew, a director and shareholder of the parent company is a beneficiary. Loan repayments of £201,383 (2018: £85,923) were made during the year. At the reporting date the amount owing to the Trust totalled £Nil (2018: £199,084) and interest of £Nil (2018: £21,460) was accrued.

LT Build Limited

LT Build Limited was a company under common management. This relationship ceased during April 2018. Up to that date the company provided services to LT Build Limited amounting to £1,341,273. Both at the reporting date and at 31 May 2018 the entities were not related parties.

The immediate parent company is Vensyn Group Limited, whose consolidated financial statements include this company’s results.

The ultimate parent company is I45 Limited, whose consolidated financial statements include this company’s results.

Mr G Andrew is the ultimate controlling party.