Apollo Business Finance Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 10292884 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

FOR

APOLLO BUSINESS FINANCE LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTORS:

Mr J N Burton

Mrs J Burton

Mr J D S Cranston

Mr J R Day

REGISTERED OFFICE:

Adamson House

Wilmslow Road

Manchester

M20 2YY

REGISTERED NUMBER:

10292884 (England and Wales)

ACCOUNTANTS:

Dunhams

Chartered Accountants

11 Warwick Road

Old Trafford

Manchester

M16 0QQ

CURRENT ASSETS

Debtors

4

2,121,010

1,909,221

Cash at bank

236,533

211,822

2,357,543

2,121,043

CREDITORS

Amounts falling due within one year

5

1,731,522

1,736,583

NET CURRENT ASSETS

626,021

384,460

TOTAL ASSETS LESS CURRENT LIABILITIES

626,021

384,460

CAPITAL AND RESERVES

Called up share capital

100,000

100,000

Retained earnings

526,021

284,460

626,021

384,460

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2020 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2020 and were signed on its behalf by:

Mr J D S Cranston - Director

1.	STATUTORY INFORMATION

Apollo Business Finance Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

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 impact of Covid-19 affected the company's trading between February-May 2020, and there was a noticeable downturn in activity in that period. However from June 2020 there has been a return to normal trading. with only a negligible effect on cash flow. Our financial providers have remained extremely supportive and the company has maintained all of its financial commitments without the need to make any payment arrangements, thus the directors concluded that there is not a material uncertainty to cast doubt on the entity's ability to continue as a going concern

Revenue recognition

Revenue comprises fees for the provision of invoice financing services, net of Value Added Tax, and is recognised as explained below.

Discount income

Discount income is recognised in the statement of comprehensive income for all financial assets measured at fair value. Discount income is calculated and applied to clients' accounts on a daily basis.

Service fee and other income

Ancillary to the provision finance to its customers, the company provides various services for which it charges a fee. Income for these services is recognised as the service is provided.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Operating lease payments

Leases are categorised as operating leases where the lessor retains substantially all the risks and rewards of ownership of the leased asset. All leased assets held by the company are categorised as operating leases.

Payments made under operating leases are recognised in the statement of comprehensive income on a straight- line basis over the term of the lease. Lease incentives received are recognised in the statement of comprehensive income as an integral part of the total lease expense over the term of the lease.

Finance Leases

Leases in which the company assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. Where land and buildings are held under leases the accounting treatment of the land is considered separately from that of the buildings. Leased assets acquired by way of finance lease are stated at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease less accumulated depreciation and impairment losses.

Borrowing costs

Borrowing costs in relation to the back-back financing facility are shown within cost of sales. The facility is used to provide invoice finance to clients and is backed by the underlying debts of the clients.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial assets and financial 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 balance sheet when the company becomes party to the contractual provisions of the instrument

Classification and Measurement

Management determine the classification of the company's financial assets at initial recognition into one of the following categories - loans and other receivables, held-to-maturity financial assets, available-for-sale financial assets at fair value through profit or loss. The company has not held any held-to-maturity, available-for-sale financial assets or financial assets at fair value through profit or loss at any point during the period.

The company initially recognises advances to clients and related parties on the date that they originated. These balances are included in loans and other receivables and are initially recognised at fair value including directly attributable costs, and subsequently measure at fair value less impairment losses

The company initially recognises borrowings from banks and related parties at fair value, These balances are included in borrowings and trade and other payables

Impairment of finance assets and receivables

The recognition of impairment is a critical accounting judgement. Determining whether or not a financial instrument is impaired at the balance sheet date is complex and requires management judgement, as an instrument may be impaired with obvious indication, such as arrears. As well as using experience of prior periods and detailed knowledge of customers' performance, management is also able to assess the behaviour of financial instruments since the balance sheet date to determine which financial instruments may be impaired as at the balance sheet date. In respect of finance and receivables, the company assess on an ongoing basis whether there is objective evidence that an individual asset is impaired. If such indication exists, the assets' recoverable amount is estimated. Where its value is known this will take into account the value of any collateral held. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognised in the statement of comprehensive income.

Impairment losses are reversed through the statement of comprehensive income if there is a change in the estimates used to determine the recoverable amount

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

the company de recognises a financial liability when, and only when, the obligation specified in the contract is discharged or cancelled or expires.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Offsetting of financial assets and liabilities

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is a legally enforceable right to offset the recognised amounts and there is intention to settle on an net basis, or to realise the liability simultaneously.

Cash and cash equivalents

Cash balances and demand deposits are included as a component of cash and cash equivalents for the purpose only of the statement of cash flows.

Expenses

Where commission is recognised in the statement of comprehensive income over the life of the relationship.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 7 (2019 - 6 ) .

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

2,072,505

1,854,126

Other debtors

48,505

55,095

2,121,010

1,909,221

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts

50,000

-

Trade creditors

1,504,356

1,655,060

Taxation and social security

169,602

73,965

Other creditors

7,564

7,558

1,731,522

1,736,583

6.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Other Loans

1,551,624

1,521,624

Advance Global Capital Ltd have a fixed and floating charge over all assets of the company they also hold the personal Guarantees of Mr J Burton £125,000 and Mr J Day £25,000.

7.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

During the period the company repaid in full the loan from Universal Acceptances Limited a company in which the director Mr JDS Cranston has controlling interest (2019 £96,500) during the year the sum of £7,774 (2019 £9,233) was charged in interest

During the period the company repaid in full the loan from Burton Varley Ltd a company in which the directors Mr and Mrs J Burton have controlling interest loaned the company (2019 £65,000) during the year the sum of £5,417 (2019 £4,500) was charged in interest

During the period the company repaid in full the loan from Fryday Consulting Ltd a company in which the director Mr J Day has controlling interest (2019 £7,500) during the year the sum of £562 (2019 £750) was charged in interest