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Quick Reach Powered Access Ltd
Registered number: 08985825
Audited financial statements
For the year ended 31 July 2019
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QUICK REACH POWERED ACCESS LTD
REGISTERED NUMBER: 08985825
BALANCE SHEET
AS AT 31 JULY 2019
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Debtors: amounts falling due within one year
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Creditors: amounts due within one year
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Total assets less current liabilities
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Creditors: amounts due after one year
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Provisions for liabilities
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The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 July 2020.
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QUICK REACH POWERED ACCESS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
Quick Reach Powered Access Limited ("the Company") is a private company incorporated in England and Wales and limited by its shares. The address of the registered office and principal place of business is:
Unit 2d James Nasmyth Way
Green Lane
Eccles
Manchester
M30 0SF
The financial statements of the Company are presented in the currency of the primary economic environment in which the entity operates, being Pound Sterling.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The comparative information in the financial statements was unaudited as the company was entitled to exemption from audit.
The following principal accounting policies have been applied:
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QUICK REACH POWERED ACCESS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
2.Accounting policies (continued)
In making their going concern assessment the directors have prepared financial projections extending more than 12 months from the date of approval of these financial statements. The projections incorporate the known and likely impacts of COVID-19 and Brexit and forecast continued profitability. The projections show that the Company will be able to operate within its facilities over the forecasted period.
The directors consider that the Company has adequate resources to continue in operational existence for the foreseeable future and thus the financial statements have been prepared on a going concern basis.
COVID-19 Coronavirus pandemic
The full impact of the Coronavirus pandemic is yet not clear and at the date of this report it is not possible to evaluate all potential implications for the Company´s trade, customers, and suppliers. The directors are actively analysing possible consequences whilst directing the Company’s response to mitigate these risks. Their principal objectives are to protect the health and safety of personnel in the performance of their duties, ensure the continuity of operations, and to fully co-operate with public authorities on all matters within their scope. Having modelled possible financial outcomes, the Directors expect free cash flow to remain substantially positive in 2020 and beyond, in a worst-case scenario.
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QUICK REACH POWERED ACCESS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
• the Company has transferred the significant risks and rewards of ownership to the buyer;
• the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
• the amount of revenue can be measured reliably;
• it is probable that the Company will receive the consideration due under the transaction; and
• the costs incurred or to be incurred in respect of the transaction can be measured reliably
Hire of machinery
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
• the amount of revenue can be measured reliably;
• it is probable that the Company will receive the consideration due under the contract;
• the stage of completion of the contract at the end of the reporting period can be measured reliably; and
• the costs incurred and the costs to complete the contract can be measured reliably
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to the statement of comprehensive income on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Finance costs are charged to the statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in the statement of comprehensive income in the year in which they are incurred.
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QUICK REACH POWERED ACCESS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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QUICK REACH POWERED ACCESS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets, less any residual value, over their estimated useful lives.
Depreciation is provided on the following basis:
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Leasehold Property Improvements
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Straight line over the life of the lease
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Straight line over 12.5 years
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Straight line over 3 years
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Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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QUICK REACH POWERED ACCESS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the statement of comprehensive income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
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 debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.
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 statement of comprehensive income.
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.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
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.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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QUICK REACH POWERED ACCESS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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QUICK REACH POWERED ACCESS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
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Leasehold property improvements
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Charge for the year on owned assets
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Charge for the year on financed assets
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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QUICK REACH POWERED ACCESS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
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Prepayments and accrued income
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Cash and cash equivalents
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QUICK REACH POWERED ACCESS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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The invoice financing advance as stated above is secured against the trade debtors to which they relate.
There is a debenture in place around secured loan notes issued by the company to Enterprise Ventures (General Partner EV Growth II) Limited against the Company's assets.
Obligations under hire purchase contracts are secured on related assets.
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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Obligations under hire purchase contracts are secured on related assets.
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QUICK REACH POWERED ACCESS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
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Hire purchase and finance leases
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Minimum lease payments under hire purchase fall due as follows:
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Cash and cash equivalents
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Financial assets that are debt instruments measured at amortised cost
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Financial liabilities measured at amortised cost
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Financial assets measured at amortised cost comprise trade debtors and other debtors.
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Financial liabilities measured at amortised cost comprise trade creditors, obligations under hire purchase and finance leases, invoice financing and other creditors.
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QUICK REACH POWERED ACCESS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Tax losses carried forward
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Allotted, called up and fully paid
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100 (2018 - 100) Ordinary shares of £1.00 each
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Share premium account
The share premium reserve represents amounts paid in excess of the nominal value of issued share capital.
Profit & loss account
This reserve represents cumulative profits and losses and is fully distributable.
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QUICK REACH POWERED ACCESS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £51,161 (2018 - Unaudited £40,813) . Contributions totalling £10,513 (2018 - Unaudited £5,949) were payable to the fund at the balance sheet date and are included in creditors.
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Related party transactions
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During the year, key management personnel received total remuneration including salaries, pension and other benefits of £166,136 (2018: Unaudited £24,644).
The company paid dividends of £122,000 (2018: Unaudited £149,429) to the directors.
During the year, the company made sales totalling £718,594 (2018: Unaudited £749,712) to companies controlled by a common shareholder. The balance outstanding from these companies as at the year end was £208,223 (2018: Unaudited £76,276).
At the year end the Company owed its Directors £698,852 (2018: Unaudited £573,427) which included interest accrued during the year of £30,424 (2018: Unaudited £nil) at a rate of 10% per annum.
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Post balance sheet events
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Between the year end and the date of this report, the COVID-19 Coronavirus pandemic emerged globally. The potential impact of COVID-19 became significant in March 2020 and is causing widespread disruption to normal patterns of business activity across the world, including the UK. For more detail regarding the directors' view of this event please refer to note 2.2.
There have been no other significant events affecting the Company since the year end.
The immediate and ultimate parent company of Quick Reach Powered Access Limited is Quick Reach Holdings Limited. In the opinion of the directors there is no single controlling party.
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QUICK REACH POWERED ACCESS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
The auditor's report on the financial statements for the year ended 31 July 2019 was unqualified.
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In their report, the auditor emphasised the following matter without qualifying their report:
Emphasis of matter - Impact of the outbreak of COVID-19 on the financial statements
In forming our opinion on the Company financial statements, which are not modified, we draw your attention to the Directors’ view on the impact of the COVID-19 coronavirus and their consideration of the going concern basis of accounting in note 2.2 and of non-adjusting post balance sheet events in note 17.
Since the balance sheet date there has been a global pandemic from the outbreak of COVID-19. The potential impact of COVID-19 became significant in March 2020 and is causing widespread disruption to normal patterns of business activity across the world, including the UK.
The full impact following the recent emergence of the COVID-19 Coronavirus pandemic is still unknown. It is therefore not currently possible to evaluate all the potential implications to the Company’s trade, customers, suppliers and the wider economy.
The auditor's report also included an Other matter paragraph:
Other matter
Without qualifying our opinion we draw attention to accounting policy note 2.1 and the fact that the comparative information in the accounts was unaudited as the company was entitled to exemption from audit.
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The audit report was signed on 30 July 2020 by David Smithson (senior statutory auditor) on behalf of Mazars LLP.
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