Clayton Finance Limited - Accounts
Clayton Finance Limited - Accounts
Registered number |
API Partnership Limited t/a Chandler & Georges |
Chartered Accountants |
75 Westow Hill |
London |
SE19 1TX |
www.chandlerandgeorges.co.uk |
Clayton Finance Limited | |
Report and accounts | |
Contents | |
Page | |
Company information | 1 |
Director's report | 2 |
Statement of director's responsibilities | 3 |
Strategic report | 4 |
Independent auditor's report | 5 - 7 |
Income statement | 8 |
Statement of financial position | 9 |
Statement of changes in equity | 10 |
Statement of cash flows | 11 |
Notes to the financial statements | 12 - 19 |
Company Information |
Director |
Secretary |
Auditors |
75 Westow Hill |
Crystal Palace |
London |
SE19 1TX |
Bankers |
315 Station Road |
Harrow |
HA1 2AD |
Registered office |
75 Westow Hill |
Crystal Palace |
London |
SE19 1TX |
Registered number |
Registered number: | |||||||
Director's Report | |||||||
The director presents his report and financial statements for the year ended |
|||||||
Principal place of business | |||||||
Results and appropriations | |||||||
The results and the state of affairs of the company for the year are set out in the financial statements on pages 8 to 19. During the year company paid dividends of £NIL. The retained profit for the financial year of £77,444 will therefore be taken to reserves. | |||||||
Events since the balance sheet date | |||||||
Directors | |||||||
The following persons served as directors during the year: | |||||||
Disclosure of information to auditors |
The director confirms that: | |||||||
● | so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and | ||||||
● | he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. |
Strategic Report | |||||||
This report was approved by the board on |
|||||||
Mr S Datwani | |||||||
Director | |||||||
Clayton Finance Limited | |||||||
Statement of Director's Responsibilities | |||||||
The director is responsible for preparing the report and financial statements in accordance with applicable law and regulations. | |||||||
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (Financial Reporting Standard 102 and applicable law). 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 of the profit or loss of the company for that period. In preparing these financial statements, the director is required to: | |||||||
● | select suitable accounting policies and then apply them consistently; | ||||||
● | make judgements and estimates that are reasonable and prudent; | ||||||
● | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; | ||||||
● | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. | ||||||
The director is 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 enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. | |||||||
Strategic Report | |||||||
Business review | |||||||
The profit for the financial year, after taxation, amounted to £77,444 (2020 : profit of £242,558). | |||||||
The sharp decline in turnover from £10.3 million in 2020 to £3.2 million in 2021 is expained by foreign currency restrictions in Nigeria and the general economic decline caused by the Covid-19 pandemic on global demand for metals, chemicals and other commodities in which the company trades. Despite this, a profit of £77,444 was achieved (2020 £242,558) due to a combination of cost control, fewer bad debts and reduced foreign exchange losses. |
|||||||
Principal risk and uncertainties | |||||||
The company faces a number of business risks and uncertainties due to its current dependence on the Nigerian market. In response the company continues to explore other markets. | |||||||
Future developments | |||||||
It is anticipated that a return to normal (pre-pademic) trading and profitability will be very gradual and will depend on the easing of foreign currency restictions in Nigeria. | |||||||
Financial instruments | |||||||
Financial instruments are carefully managed to ensure that there is little or no liquidity risk. The company’s principal financial instruments comprise of debtors and creditors. Credit and liquidity risk is minimised by ensuring credit terms for most customers are on Letter of Credit and shorter for debtors than for creditors on open credit. All sales are to overseas customers and foreign exchange risk is minimised as most purchases and corresponding sales are in the same currency. Sufficient funds are held in respective foreign currencies for all other transactions. |
|||||||
This report was approved by the board on 29 December 2022 and signed on its behalf. | |||||||
Mr S Datwani | |||||||
Director | |||||||
Clayton Finance Limited | ||
Independent auditor's report | ||
to the members of Clayton Finance Limited | ||
Opinion |
We have audited the financial statements of Clayton Finance Limited for the year ended 31 December 2021 which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, 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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). | ||
In our opinion the financial statements: | ||
● | give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended; | |
● | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; | |
● | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis of opinion | ||
Conclusions relating to going concern | ||
In auditing the financial statements, we have concluded that the director’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate. | ||
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the [entity]’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue. | ||
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. | ||
Other information | ||
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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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. |
||
We have nothing to report in this regard. | ||
Opinions on other matters prescribed by the Companies Act 2006 | ||
In our opinion, based on the work undertaken in the course of the audit: | ||
● | the information given in the 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 strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. | |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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: | ||
● | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or | |
● | the financial statements are not in agreement with the accounting records and returns; or | |
● | certain disclosures of directors’ remuneration specified by law are not made; or | |
● | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors | ||
As explained more fully in the directors’ responsibilities statement, 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 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 company or to cease operations, or have no realistic alternative but to do so. | ||
Auditor’s responsibilities for the audit of the financial statements | ||
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 auditor’s 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. |
||
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
The extent to which the audit was considered capable of detecting irregularities including fraud | ||
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: | ||
● | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; | |
● | we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience in the trading of metals and chemicals. | |
● | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation; | |
● | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and | |
● | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
|
● | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; | |
● | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and | |
To address the risk of fraud through management bias and override of controls, we: | ||
● | performed analytical procedures to identify any unusual or unexpected relationships; | |
● | tested journal entries to identify unusual transactions; | |
● | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; | |
● | investigated the rationale behind significant or unusual transactions; and | |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: | ||
● | agreeing financial statement disclosures to underlying supporting documentation; | |
● | reading the minutes of meetings of those charged with governance; | |
● | enquiring of management as to actual and potential litigation and claims; | |
● | reviewing correspondence with HMRC, relevant regulators including the Heath and Safety Executive and the company’s legal advisors; and | |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. | ||
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. | ||
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 auditor’s report. | ||
Use of our report | ||
This report is made solely to the company's members, as a body, 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 auditor's 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 as a body, for our audit work, for this report, or for the opinions we have formed. | ||
(Senior Statutory Auditor) | 75 Westow Hill | |
for and on behalf of | London | |
SE19 1TX | ||
Accountants and Statutory Auditors | ||
Income Statement | ||||||||
for the year ended |
||||||||
Notes | 2021 | 2020 | ||||||
£ | £ | |||||||
Turnover | 2 | |||||||
Cost of sales | ( |
( |
||||||
Gross profit | ||||||||
Distribution costs | ( |
( |
||||||
Administrative expenses | ( |
( |
||||||
Other operating income | ||||||||
Operating profit | 3 | |||||||
Interest receivable | ||||||||
Interest payable | 6 | ( |
( |
|||||
Profit on ordinary activities before taxation | ||||||||
Tax on profit on ordinary activities | 7 | ( |
( |
|||||
Profit for the financial year | ||||||||
Statement of Financial Position | |||||||
as at |
|||||||
Notes | 2021 | 2020 | |||||
£ | £ | ||||||
Fixed assets | |||||||
Tangible assets | 8 | ||||||
Current assets | |||||||
Debtors | 9 | ||||||
Cash at bank and in hand | |||||||
Creditors: amounts falling due within one year | 10 | ( |
( |
||||
Net current assets | |||||||
Total assets less current liabilities | |||||||
Creditors: amounts falling due after more than one year | 11 | ( |
( |
||||
Net assets | |||||||
Capital and reserves | |||||||
Called up share capital | 13 | ||||||
Profit and loss account | 14 | ||||||
Total equity | |||||||
Mr S Datwani | |||||||
Director | |||||||
Approved by the board on |
|||||||
Statement of Changes in Equity | ||||||||||
for the year ended |
||||||||||
Share | Share | Other | Profit | Total | ||||||
capital | premium | reserves | and loss | |||||||
account | ||||||||||
£ | £ | £ | £ | £ | ||||||
At 1 January 2020 | - | - | ||||||||
Profit for the financial year | ||||||||||
At 31 December 2020 | - | - | ||||||||
At 1 January 2021 | - | - | ||||||||
Profit for the financial year | ||||||||||
At 31 December 2021 | - | - | ||||||||
Statement of Cash Flows | |||||
for the year ended |
|||||
Notes | 2021 | 2020 | |||
£ | £ | ||||
Operating activities | |||||
Profit for the financial year | 77,444 | 242,558 | |||
Adjustments for: | |||||
Interest receivable | (86,167) | (76,974) | |||
Interest payable | 4,899 | 5,757 | |||
Tax on profit on ordinary activities | 18,251 | 56,844 | |||
Depreciation | 534 | 795 | |||
Decrease/(increase) in debtors | 4,061,721 | (93,063) | |||
Decrease in creditors | (3,914,383) | (1,270,649) | |||
( |
|||||
Interest received | |||||
Interest paid | ( |
( |
|||
Corporation tax paid | ( |
||||
Cash generated by/(used in) operating activities | ( |
||||
Investing activities | |||||
Payments to acquire tangible fixed assets | - | ( |
|||
Cash used in investing activities | - | ( |
|||
Financing activities | |||||
Proceeds from new loans | - | ||||
Repayment of loans | ( |
- | |||
Cash (used in)/generated by financing activities | ( |
||||
Net cash generated/(used) | |||||
Cash generated by/(used in) operating activities | ( |
||||
Cash used in investing activities | - | ( |
|||
Cash (used in)/generated by financing activities | ( |
||||
Net cash generated/(used) | ( |
||||
Cash and cash equivalents at 1 January | 387,582 | 1,397,813 | |||
Cash and cash equivalents at 31 December | 573,481 | 387,582 | |||
Cash and cash equivalents comprise: | |||||
Cash at bank | |||||
Clayton Finance Limited | ||||||||
Notes to the Accounts | ||||||||
for the year ended 31 December 2021 | ||||||||
1 | Summary of significant accounting policies | |||||||
Basis of preparation | ||||||||
Turnover | ||||||||
Going concern | ||||||||
The financial statements have been prepared on a going concern basis since the director has prepared trading and cashflow forecasts, which show that the company will have sufficient working capital for the foreseeable future. |
||||||||
Tangible fixed assets |
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: | ||||||||
Plant and machinery | 4/6.66 years |
Loans and other financial assets are initially at fair value, net of transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
||||||||
Loans and other financial liabilities are initially recognised at fair value, net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
||||||||
Taxation | ||||||||
Foreign currency translation | ||||||||
At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
||||||||
Pensions | ||||||||
Government Grants | ||||||||
2 | Analysis of turnover | 2021 | 2020 | |||||
£ | £ | |||||||
Sale of goods | ||||||||
By geographical market: | ||||||||
Africa | ||||||||
Rest of world | ||||||||
3 | Operating profit | 2021 | 2020 | |||||
£ | £ | |||||||
This is stated after charging: | ||||||||
Depreciation of owned fixed assets | ||||||||
Operating lease rentals - land and buildings | ||||||||
Auditors' remuneration for audit services | ||||||||
Auditors' remuneration for other services | ||||||||
Contributions to defined benefit pension plans | ||||||||
4 | Director's emoluments | 2021 | 2020 | |||||
£ | £ | |||||||
Emoluments | ||||||||
5 | Staff costs | 2021 | 2020 | |||||
£ | £ | |||||||
Wages and salaries | ||||||||
Social security costs | ||||||||
Other pension costs | ||||||||
Average number of employees during the year | Number | Number | ||||||
Administration | ||||||||
Sales | ||||||||
6 | Interest payable | 2021 | 2020 | |||||
£ | £ | |||||||
Bank loans and overdrafts | ||||||||
Other interest | ||||||||
7 | Taxation | 2021 | 2020 | |||||
£ | £ | |||||||
Analysis of charge in period | ||||||||
Current tax: | ||||||||
UK corporation tax on profits of the period | ||||||||
Tax on profit on ordinary activities | ||||||||
Factors affecting tax charge for period | ||||||||
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: | ||||||||
2021 | 2020 | |||||||
£ | £ | |||||||
Profit on ordinary activities before tax | ||||||||
£ | £ | |||||||
Profit on ordinary activities multiplied by the standard rate of corporation tax | ||||||||
Effects of: | ||||||||
Expenses not deductible for tax purposes | ( |
|||||||
Capital allowances for period in excess of depreciation | ||||||||
Current tax charge for period | ||||||||
8 | Tangible fixed assets | |||||||
Fixtures, fittings, tools and equipment | ||||||||
At cost | ||||||||
£ | ||||||||
Cost or valuation | ||||||||
At 1 January 2021 | ||||||||
At 31 December 2021 | ||||||||
Depreciation | ||||||||
At 1 January 2021 | ||||||||
Charge for the year | ||||||||
At 31 December 2021 | ||||||||
Carrying amount | ||||||||
At 31 December 2021 | ||||||||
At 31 December 2020 | ||||||||
9 | Debtors | 2021 | 2020 | |||||
£ | £ | |||||||
Trade debtors | ||||||||
Other debtors | ||||||||
Prepayments and accrued income | ||||||||
10 | Creditors: amounts falling due within one year | 2021 | 2020 | |||||
£ | £ | |||||||
Bank loans | ||||||||
Trade creditors | ||||||||
Corporation tax | ||||||||
Other taxes and social security costs | ||||||||
Other creditors | ||||||||
Accruals and deferred income | ||||||||
11 | Creditors: amounts falling due after one year | 2021 | 2020 | |||||
£ | £ | |||||||
Bank loans | ||||||||
Bank loans comprise of the Bounce Back Loan Scheme (BBLS), the rate of interest is 2.5% and the loan will be fully repaid by June 2026. | ||||||||
12 | Loans | 2021 | 2020 | |||||
£ | £ | |||||||
Loans not wholly repayable within five years: | ||||||||
Analysis of maturity of debt: | ||||||||
Within one year or on demand | ||||||||
Between one and two years | ||||||||
Between two and five years | ||||||||
After five years | - | |||||||
13 | Share capital | Nominal | 2021 | 2021 | 2020 | |||
value | Number | £ | £ | |||||
Allotted, called up and fully paid: | ||||||||
£ |
||||||||
14 | Profit and loss account | 2021 | 2020 | |||||
£ | £ | |||||||
At 1 January | ||||||||
Profit for the financial year | ||||||||
At 31 December | ||||||||
15 | Other financial commitments | |||||||
Total future minimum lease payments under non-cancellable operating leases: | ||||||||
Land and buildings | Land and buildings | Other | Other | |||||
2021 | 2020 | 2021 | 2020 | |||||
£ | £ | £ | £ | |||||
Falling due: | ||||||||
within one year | - | - | ||||||
16 | Related party transactions | |||||||
Mr B Datwani - Close family member Included in Other debtors is a balance owed by Mr B Datwani, a former director of the company. No interest is charged and the loan is repayable on demand. Amount due from the related party 2021 £163,490 2020 £1,629,229 Emrick Resources Ltd - Associate Included in Trade creditors and Other creditors is an amount due to Emrick Resources Ltd. Amount due to the related party 2021 £776,231 2020 £751,417 Other related parties under common key management: Included in Other debtors are loans made to the below companies, where Mr S Datwani is a director or where there is a close family connection. The loans are charged at base rate plus 4% and are repayable on demand. Amount due from the related party Ruleform Limited 2021 £384,140 2020 £346,717 Centennial Centre Trading (2014) Ltd 2021 £55,379 2020 £49,109 Rulecare Limited 2021 £466,796 2020 £422,138 Margaret Property Investments Ltd 2021 £608,145 2020 £582,115 Rulecrown Properties Ltd 2021 £37,752 2020 £36,260 Black Swan Homes (Sheldon) Ltd 2021 £132,398 2020 £91,656 Cityland Investments Ltd 2021 £355,080 2020 £313,30 Begonia Holdings Ltd 2021 £706,673 2020 £45,926 CRGashby Ltd 2021 £NIL 2020 £25,965 Landstone Homes (Goldenhill) Ltd 2021 £20,652 2020 £19,836 Rulewater Ltd 2021 £25,000 2020 £8,478 |
||||||||
Included in Other creditors are amounts due to the below companies, where Mr S Datwani is a director. The loans are charged at base rate plus 4% and repayable on demand. Amount due to the related party The H Suite Limited 2021 NIL 2020 £2,820 Mayfield Ltd 2021 £40,537 2020 £NIL |
17 | Controlling party | |||||||
18 | Presentation currency | |||||||
19 | Legal form of entity and country of incorporation | |||||||
Clayton Finance Limited is a private company limited by shares and incorporated in England. | ||||||||
20 | Principal place of business | |||||||
The address of the company's principal place of business is: | ||||||||
Landmark | ||||||||
3-4 Devonshire Street | ||||||||
London | ||||||||
W1W 5DT |