Addspace Furniture Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 05109783 (England and Wales)

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

FOR

ADDSPACE FURNITURE LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mr P Grainger

Mr P M Jarrett

Mr M C O'Dowd

SECRETARY:

Mr P Grainger

REGISTERED OFFICE:

Braithwell Way

Hellaby Industrial Estate

Hellaby

Rotherham

South Yorkshire

S66 8QY

REGISTERED NUMBER:

05109783 (England and Wales)

AUDITORS:

Gibson Booth Limited

Statutory Auditor

12 Victoria Road

Barnsley

South Yorkshire

S70 2BB

BANKERS:

HSBC Bank PLC

Carmel House

49-63 Fargate

Sheffield

South Yorkshire

S1 2HD

FIXED ASSETS

Tangible assets

4

945,038

1,030,711

CURRENT ASSETS

Stocks

5

770,082

715,316

Debtors

6

762,493

1,803,231

Cash at bank and in hand

12,163

134,738

1,544,738

2,653,285

CREDITORS

Amounts falling due within one year

7

2,213,939

2,852,244

NET CURRENT LIABILITIES

(669,201

)

(198,959

)

TOTAL ASSETS LESS CURRENT LIABILITIES

275,837

831,752

CREDITORS

Amounts falling due after more than one year

8

(406,595

)

(563,005

)

PROVISIONS FOR LIABILITIES

-

(73,691

)

NET (LIABILITIES)/ASSETS

(130,758

)

195,056

CAPITAL AND RESERVES

Called up share capital

11

200,000

200,000

Retained earnings

(330,758

)

(4,944

)

SHAREHOLDERS' FUNDS

(130,758

)

195,056

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 8 June 2022 and were signed on its behalf by:

Mr M C O'Dowd - Director

1.	STATUTORY INFORMATION

Addspace Furniture 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 financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest pound.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The financial statements have been prepared on a going concern basis. The results for the year showed a loss before taxation of £432,437 (2020: £269,259) and at the year end the company had net current liabilities of £669,201 (2020: £198,959).

Projections and forecasts have been prepared to September 2023 based on a number of underlying assumptions, which are subject to significant uncertainty at this time. These show that the expected income and expenditure, together with the possibility of obtaining potential funding allows the company to continue as a going concern. The financial statements do not include any adjustments that might arise if the going concern basis is not appropriate.

Significant judgements and estimates

No judgements have been made in the process of applying the below accounting policies that have had the most significant effect on amounts recognised in the financial statements.

There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Turnover

The company's turnover represents the value, excluding value added tax, of goods and services supplied to customers during the year, less customer returns.

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually dispatch of the goods.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Costs includes costs direct attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

33% on cost, 20% on cost and 10% on cost

Office equipment

-

50% on cost, 33% on cost and 25% on cost

Motor vehicles

-

25% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchases and overhead costs in bringing stocks to their present location and condition.

Work in progress

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

Finished goods

Finished goods are valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of finished goods.

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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Revenue grants

Grants which are received for compensation for expenses or losses which have already been incurred are recognisable in income when the grant is received or receivable.

Pension costs

The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

The company also make employer contributions into employee private pension schemes. The annual contributions payable are charged to the profit and loss account.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 76 (2020 - 72 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Office

Motor

machinery

equipment

vehicles

Totals

£

£

£

£

COST

At 1 October 2020

3,182,918

105,027

17,590

3,305,535

Additions

82,481

3,010

-

85,491

At 30 September 2021

3,265,399

108,037

17,590

3,391,026

DEPRECIATION

At 1 October 2020

2,175,572

81,662

17,590

2,274,824

Charge for year

157,524

13,640

-

171,164

At 30 September 2021

2,333,096

95,302

17,590

2,445,988

NET BOOK VALUE

At 30 September 2021

932,303

12,735

-

945,038

At 30 September 2020

1,007,346

23,365

-

1,030,711

Included in the net book value above are assets totalling a value of £652,723 (2020: £964,298) which were held under hire purchase agreements. The depreciation charge in the financial statements in relation to these assets amounted to £100,713 (2020: £113,147).

5.

STOCKS

30.9.21

30.9.20

£

£

Finished goods

494,729

467,019

Work in progress

20,370

23,673

Raw materials

254,983

224,624

770,082

715,316

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.9.21

30.9.20

£

£

Trade debtors

482,017

1,557,021

Amounts owed by group undertakings

98,484

63,695

Prepayments and accrued income

181,992

182,515

762,493

1,803,231

The amount of trade debtors outstanding at the balance sheet date relating to the invoice financing creditor was £472,247 (2020: £1,399,502).

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.9.21

30.9.20

£

£

Bank loans and overdrafts

37,500

16,667

Invoice financing creditor

296,615

878,150

Hire purchase contracts (see note 9)

163,554

182,829

Trade creditors

1,285,929

1,245,196

Amounts owed to group undertakings

247,228

42,912

Corporation tax

-

32,932

Social security and other taxes

28,131

26,201

VAT

89,436

56,597

Other creditors

27,697

72,897

Accruals and deferred income

37,849

297,863

2,213,939

2,852,244

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30.9.21

30.9.20

£

£

Bank loans - 1-2 years

200,000

233,333

Hire purchase contracts (see note 9)

206,595

329,672

406,595

563,005

9.	LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

30.9.21

30.9.20

£

£

Net obligations repayable:

Within one year

163,554

182,829

Between one and five years

206,595

329,672

370,149

512,501

10.	SECURED DEBTS

The following secured debts are included within creditors:

30.9.21

30.9.20

£

£

Hire purchase contracts

370,149

512,501

Bank loan

237,500

250,000

Invoice financing creditor

296,615

878,150

904,264

1,640,651

The company has provided a debenture in relation to bank borrowings secured by a fixed and floating charge over its assets.

The bank holds a charge over the contract monies collected in relation to the invoice financing.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

30.9.21

30.9.20

value:

£

£

200,000

Ordinary

£1

200,000

200,000

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Scott Mell FCA (Senior Statutory Auditor)

for and on behalf of Gibson Booth Limited

13.	FINANCIAL COMMITMENTS

Total financial commitments, guarantees and contingencies which are not included in the balance sheet amount to £985,582 (2020: £1,318,478).

14.	RELATED PARTY DISCLOSURES

Owners holding a participating interest

2021

2020

£

£

Management charges

79,500

99,600

Other related parties

2021

2020

£

£

Rents paid

-

9,500

Sale of goods

370,100

320,400

Amounts due from related parties

98,484

20,783

Group debt

The company has provided a Composite Company Limited Multilateral Guarantee with Audacia Holdings Limited, Audacia Property Limited and 2P2M Limited in relation to group bank borrowings. As at 30 September 2021 group borrowings amounted to £534,116 (2020: £1,262,202).

The company has also provided a debenture in relation to bank borrowings secured by a fixed and floating charge over its assets.

15.	ULTIMATE PARENT UNDERTAKING

The ultimate parent undertaking is Audacia Holdings Limited

The parent company's registered office address is:

c/o Addspace Furniture Unit

Braithwell

Hellaby Industrial Estate

Rotherham

South Yorkshire

S66 8QY