ACCOUNTS - Final Accounts
ACCOUNTS - Final Accounts
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DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2020 |
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COMPANY INFORMATION
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CONTENTS
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2020
The Anvil Group (International) Limited is a leading risk management company delivering advanced technology-led business resilience solutions for globally operating organisations. Our mission is to protect our clients’ brand reputation and shareholder value by keeping their people safe and other business assets secure.
Our Vision To be recognized as the vital enabler of global business. Our Core Values Anvil Group is a people business. Our corporate values reflect our approach to delivering services and solutions to our clients. This includes a focus, demonstrating an entrepreneurial approach and an appetite for positive change. Our core values are reflected in all our activities across the Group: Supportive environment: We are supportive of and collaborative with all our colleagues; our highly motivated management team is focused on creating an environment within which our people can thrive. Excellence in people: We recruit, develop and recognise talent throughout the Group, ensuring that we promote an inclusive and diverse environment. Long-term client relationships: We adopt a long-term mindset with our clients, constantly seeking opportunities that are beneficial in the longer term. High-quality work: We deliver professional, high-quality, consistent and compliant work at all times. Group-wide entrepreneurship: We have a willingness and desire to seek out Group-wide business development opportunities and respond to these opportunities with agility and pace. Appetite for change: We are instigators of, and receptive to, positive change. Our Global Presence Risk management is a global business and our offices and partner network are strategically located to deliver our services and solutions, wherever they are required. Our head office in the UK serves clients based in Europe and the Middle East and our office in the US serves our clients based in North America. Additionally, in order to support those clients whose operational footprint is truly worldwide, we have developed a robust global network of accredited partners to provide the specialist services required in the realm of health, security and general logistics. Our Business Our proposition to clients spans five areas: • Risk Management Technology • Threat Monitoring and Risk Intelligence Gathering, Reporting & Analysis • 24/7 International Medical and Security Assistance • Operational Resilience (Corporate Security and Protection Services) • Occupational Health
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
Our Business Strategy For our clients: We provide an extensive range of complementary professional services and technology solutions, backed by world class technical expertise, global presence and 100% focus on mitigating risks. For our people: We offer high-quality, stimulating and exciting work, in a supportive, entrepreneurial environment with competitive, meritocratic rewards, personal recognition and professional development opportunities. Our Business Model for Continued Growth We target reliable, sustainable year-on-year underlying earnings growth, while investing for the future in order to achieve a step change in the Group's future earnings. Our business model is designed to continually develop, enhance and deliver our extensive range of professional services and technologies to clients across all industry sectors. This model is based on a clear growth strategy, delivered through the exceptional capabilities of our people, and underpinned by well-established and efficient organisational mechanisms and processes.
Principal activities and review of the business
The principal activity of the business continues to be the provision of travel risk management and crisis avoidance services incorporating a range of physical, technological, information and medical services to corporations in the United Kingdom and internationally. The Company’s key performance indicators (continuing operations) during the year were as follows: 2020 2019 Change (%) Turnover 17,719,278 10,895,827 63% Gross Profit 7,027,791 5,484,189 28% Profit for the year 1,868,050 1,001,295 87% Net current assets 4,914,953 3,609,983 36% Average number of employees 119 104 14% The directors believe that the Company is in a strong position to continue improving profitability and to increase its global revenue stream related to its core products.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
General Risks
Commercial Risks: Risks and uncertainties that are largely within the control of the Company include the maintenance of our competitive position to ensure the achievement and collection of sufficient revenue to meet the Company’s objectives. The Company maintains significant cash reserves both to mitigate against the possibility of periods of reduced working capital and to ensure adequate working capital is available to meet any sudden increase in the level of response work clients may require. Other normal business risks include dependence on the continued availability of key personnel to ensure that our clients receive the level of service they are entitled to expect, and the ability of the Company to continue to provide that level of service. The reputation of the Company is critical to its continued success and it works hard to develop and protect that reputation by ensuring that it only associates itself with activities that are appropriate for a business in its sector. The Group continues to abide by all areas of legislation, which remains a major burden on organizations. Financial Risks: The decision for the UK to leave the EU has resulted in implications for the relative value of sterling, which is our functional and reporting currency. The past two years have seen significant growth in our dollar revenues and costs. The impact of currency movements on our earnings cannot be reliably forecast and remains an area of uncertainty, though the Company does seek to reduce uncertainty by entering into hedging arrangements to minimise risk where possible. Maintaining margins whilst containing operating costs is the major risk. New customers are assessed for credit risks and credit limits are applied where necessary. All risks are constantly monitored and appropriate action taken where necessary. Cash flow is monitored daily and professional staff are employed to ensure new legislation is complied with. Covid-19 In response to the Covid-19 pandemic which became evident during the first quarter of 2020, we took swift action to ensure the safe working of employees and clients, whilst maintaining operational continuity and efficiency. The Group, on the whole, has performed robustly in terms of financial performance. In April 2020, a detailed, bottom up reforecast was performed with certain income generating areas of the business in order to assess the expected impact of the pandemic and to identify the key risk areas set out below;
∙Risk Management Technology – due to the nature of the products being heavily reliant upon business travel and customers potentially reviewing their capital expenditure in light of the pandemic.
∙24/7 International Medical and Security Assistance – due to the nature of the service being heavily reliant upon business travel and customers potentially reviewing their capital expenditure in light of the pandemic.
∙Operational Resilience (Corporate Security and Protection Services) – due to the nature of the business being heavily reliant upon international operations and the protection of business premises.
In order to monitor the impact, we focussed on short term key performance indicators that influence business performance, such as utilisation of technology, case management volumes in assistance and requests for corporate security and protection services. A 'likely scenario' and a 'worst case scenario' were considered for each business which were closely reported upon and monitored by the Board on a weekly basis. Year to date trading performance against the detailed reforecast continues to be closely monitored by both the Board and the Senior Management Team.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
At the time of reporting, the Group was not required to take advantage of the UK Government’s Furlough scheme, make any staff redundancies or restructure the business in any adverse way.
Despite the pandemic, the Group remains in strong financial health and we remain confident that the Group is in a position to deliver continued growth, both through our existing service offering and by the introduction of a complementary range of new products and services in the realm of Occupational Health. Our strong technology platform enabled for a seamless transition to work from home, with well-established resources and access to Microsoft Team's access across the Group. Appropriate hardware, such as additional screens, were provided to staff as needed, ensuring that our staff were working from home in a safe, comfortable and productive environment. In all of our office locations, we've taken all reasonable steps to make our premises 'Covid-19- secure', based on local Government advice in each of the regions and markets in which we operate. Each of our business premises, regardless of size, have to complete and pass an individual Office Risk Assessment, and all returning staff have to complete and maintain a Personal Risk Assessment during periods they're attending our offices in person. Throughout the pandemic our leadership team have hosted regular weekly meetings, keeping staff up to date with the business performance and retaining a real sense of community across what has been a broadly virtual organisation. Our HR department organised 'Wellness check-ins' by Managers across the business in addition to providing all staff with significant guidance on adapting to working from home. As we look to the future, we are now welcoming increasing numbers of staff back to our office environments and will continue to evolve our estate and collaboration tools to support new and emerging ways of working.
The increase in core activity during 2019-20 is expected to be maintained in 2021 and the Group is in a strong position to continue to diversify and take advantage of the increased need for ensuring employee health and safety, and business security in an increasingly unpredictable world.
Key performance indicators for the group are;
Financial: Turnover, gross margins, operating costs and profitability. Clients: Winning new long-term clients and additional new business, client retention and expansion of existing contracts. Products: Developing new business lines and services, whilst continuously improving existing market offerings. Key Performance Indicators: Internal KPI’s both for the business and individuals who work within the business. Staff: Staff retention, personal development and internal careers paths. All these performance indicators are regularly reported and reviewed by the board of Directors.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2020
The directors present their report and the financial statements for the year ended 30 June 2020.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements 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 Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation and minority interests, amounted to £1,788,813 (2019 -£837,996).
Dividends paid in the year amounted to £520,000 (2019: £145,000).
The directors who served during the year were:
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THE ANVIL GROUP (INTERNATIONAL) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
This year saw us undertake our first ever Employee Engagement survey, we have used the results to identify areas for improvement whilst being mindful not to neglect the good things that our people have told us, through the survey, that we already deliver.
We made the full survey results available to all our employees, held open sessions to explain and discuss the findings, and then consulted with the teams regularly to seek feedback and opinions on how the business could work to progress the areas identified as needing improvement. Action plans that are regularly reviewed have been created by the employees, in collaboration with senior leaders and directors, ensuring that that engagement and two-way communication with our people remains high on our agenda. We pride ourselves on our open and transparent communication with our people, we hold regular town hall meetings to share Company financial results, discuss the engagement plans and take open questions from the floor about all areas of the business. Engagement with our employees continues to be a primary focus for the business.
Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
Following the year end, the United Kingdom left the European Union on 1 January 2021 at the end of the transition period. The directors have assessed the impact of the changes in legislation and consider that no material impact on the business is expected as a result.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE ANVIL GROUP (INTERNATIONAL) LIMITED
We have audited the financial statements of The Anvil Group (International) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2020, which comprise the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and Company Statement of changes in equity and the related notes, including a summary of 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:
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 qualified opinion.
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
∙the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
∙the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Group's or the parent Company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
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THE ANVIL GROUP (INTERNATIONAL) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE ANVIL GROUP (INTERNATIONAL) LIMITED (CONTINUED)
The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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:
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THE ANVIL GROUP (INTERNATIONAL) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE ANVIL GROUP (INTERNATIONAL) LIMITED (CONTINUED)
As explained more fully in the Directors' responsibilities statement on page 5, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.
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 Auditors' 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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
This report is made solely to the Company's members 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 Auditors' 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 for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
Brockbourne House
77 Mount Ephraim
Kent
TN4 8BS
Date:
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
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CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2020
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 36 form part of these financial statements.
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COMPANY BALANCE SHEET
AS AT 30 JUNE 2020
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 36 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
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CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
The Anvil Group (International) Limited (the Company) is a company limited by shares which is domiciled and incorporated in England and Wales.
The address of its registered office is Vicarage House, 58-60 Kensington Church Street, London, W8 4DB. The principal place of business of the Company is Signal House, Grange Road, Christchurch, BH23 4JE. The principal activity of this Company is security risk management. The principal activity of the subsidiary companies is security risk management.
2.Accounting policies
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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.Accounting policies (continued)
The financial statements have been prepared on a going concern basis which assumes the Group and its parent Company will continue in operational existence for the foreseeable future.
The directors have taken into account all available information about the Group and parent Company’s trading prospects and cashflow requirements for 12 months from the date of approval of the financial statements and consider that both the Group and the parent Company are a going concern. Although the current COVID-19 outbreak has had an overall impact on the global economy, the Group and its parent Company have not been directly affected by the recent pandemic on a business or operational level. The duration and impact of the COVID-19 pandemic, as well as the effectiveness of government and central bank responses, remains unclear at this time. The Group and its parent Company continue to monitor the impact of COVID-19 and have implemented a number of measures to mitigate the risks identified. The Group and its parent Company are taking the necessary steps to minimise the risk of contributing to the spread of the virus, which includes restrictions on travel, providing up-to-date resources to all employees and guidance on working remotely. The Group and its parent Company have long term contracts with a number of customers and suppliers across different geographic areas and industries. As a consequence, the directors believe that the Group is well placed to manage its business risks successfully despite the current uncertain economic outlook.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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:
Rendering of services
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 Group has a number of revenue streams, each of which has a specific revenue recognition policy. Primarily, the Group provides annuity services to its customers on a contractual basis, for which revenue is typically invoiced in advance as deferred income and released to the profit and loss account over the contract duration.
Revenue from medical cases is recognised as accrued income while all cost invoices are obtained. Once the case is complete, revenue is accounted for once the sales invoice is raised. Revenue from PPE sales is recognised once the goods are dispatched to the customer. Revenues arising from ancillary sales is recognised once the service has been delivered to the customer.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Goodwill recognised on the acquisition of a subsidiary is considered to have a useful life of five years and will be amortised over this period. Goodwill will be assessed for impairment at each reporting date.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
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 average costbasis. Work in progress and finished goods include labour and attributable overheads.
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.
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.
In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
Page 21
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.Accounting policies (continued)
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 Consolidated statement of comprehensive income.
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 Group 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.
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.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.
Page 22
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.Accounting policies (continued)
Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
Finance costs are charged to profit or loss 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.
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.
Rentals paid under operating leases are charged to profit or loss 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.
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.Accounting policies (continued)
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss 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 Group in independently administered funds.
Interest income is recognised in profit or loss using the effective interest method.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet date, except that:
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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Deferred income: One key area of judgement and estimation is considered to be the measurement and recognition of deferred income. The Group has control and review procedures in place to ensure that estimates are made consistently and on an appropriate basis, in accordance with contractual terms.
The whole of the turnover is attributable to the Group's principal activity, operational and travel risk management.
Analysis of turnover by country of destination:
Page 25
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Page 26
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
9.Taxation (continued)
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £
Page 27
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Page 28
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Page 29
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
13.Tangible fixed assets (continued)
Page 30
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Page 31
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Page 32
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Page 33
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
During the year the Company alloted a bonus issue of shares, in the ratio of 7:1 Ordinary Shares held, and 49:1 for every existing Ordinary B Shares held. Following the share issue, the shares were redesignated as above.
In addition, as part of a share-for-share exchange to effect the Group restructure, two new classes of shares were created, with 80 Ordinary C shares issued at nominal value and 20 Ordinary D shares issued at nominal value.
Foreign exchange reserve
Profit and loss account
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £135,051 (2019: £104,040). Contributions totalling £16,454 (2019: £nil) were payable to the fund at the balance sheet date.
Page 34
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
During the financial year, the subsidiary company The Anvil Group Mexico Services de Consultoria ceased trading. The operations of this subsidiary have been disclosed as discontinued operations within the Statement of Comprehensive Income. No cashflow arose on this transaction and the process has begun to close the company.
Page 35
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
The ultimate controlling party is Mr. J. Greenslade by virtue of his shareholding.
Page 36
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