C.F. Capital Plc Company accounts

C.F. Capital Plc Company accounts

C.F. CAPITAL PLC - Company Information

Print Friendly Version

54 false false false true false false false false false false true false false false false false false 2020-04-01 Sage Accounts Production Advanced 2020 - FRS102_2019 22,500 91,605 114,105 885 16,309 17,194 96,911 21,615 82,394 60,543 142,937 xbrli:pure xbrli:shares iso4217:GBP 02305279 2020-04-01 2021-03-31 02305279 2021-03-31 02305279 2020-03-31 02305279 2019-04-01 2020-03-31 02305279 2020-03-31 02305279 bus:RegisteredOffice 2020-04-01 2021-03-31 02305279 bus:OrdinaryShareClass1 2020-04-01 2021-03-31 02305279 bus:LeadAgentIfApplicable 2020-04-01 2021-03-31 02305279 bus:CompanySecretary1 2020-04-01 2021-03-31 02305279 bus:Director4 2020-04-01 2021-03-31 02305279 bus:Director5 2020-04-01 2021-03-31 02305279 core:WithinOneYear 2021-03-31 02305279 core:WithinOneYear 2020-03-31 02305279 core:LandBuildings 2020-03-31 02305279 core:LandBuildings 2021-03-31 02305279 core:LandBuildings 2020-04-01 2021-03-31 02305279 core:ContinuingOperations 2020-04-01 2021-03-31 02305279 core:DiscontinuedOperations 2020-04-01 2021-03-31 02305279 core:ContinuingOperations 2019-04-01 2020-03-31 02305279 core:DiscontinuedOperations 2019-04-01 2020-03-31 02305279 core:AfterOneYear 2020-03-31 02305279 core:RevaluationReserve 2019-04-01 2020-03-31 02305279 core:RetainedEarningsAccumulatedLosses 2019-04-01 2020-03-31 02305279 core:RevaluationReserve 2020-04-01 2021-03-31 02305279 core:RetainedEarningsAccumulatedLosses 2020-04-01 2021-03-31 02305279 core:UKTax 2020-04-01 2021-03-31 02305279 core:UKTax 2019-04-01 2020-03-31 02305279 bus:OrdinaryShareClass1 2019-04-01 2020-03-31 02305279 core:ShareCapital 2021-03-31 02305279 core:ShareCapital 2020-03-31 02305279 core:RevaluationReserve 2021-03-31 02305279 core:RevaluationReserve 2020-03-31 02305279 core:RetainedEarningsAccumulatedLosses 2021-03-31 02305279 core:RetainedEarningsAccumulatedLosses 2020-03-31 02305279 core:ShareCapital 2019-03-31 02305279 core:RevaluationReserve 2019-03-31 02305279 core:RetainedEarningsAccumulatedLosses 2019-03-31 02305279 core:RestatedAmount 2019-03-31 02305279 core:RestatedAmount 2020-03-31 02305279 core:BetweenOneFiveYears 2021-03-31 02305279 core:BetweenOneFiveYears 2020-03-31 02305279 core:DeferredTaxation 2020-04-01 2021-03-31 02305279 core:AcceleratedTaxDepreciationDeferredTax 2021-03-31 02305279 core:RevaluationPropertyPlantEquipmentDeferredTax 2021-03-31 02305279 core:RevaluationPropertyPlantEquipmentDeferredTax 2020-03-31 02305279 core:LandBuildings 2020-03-31 02305279 core:DeferredTaxation 2020-03-31 02305279 core:DeferredTaxation 2021-03-31 02305279 bus:LeadAgentIfApplicable 2019-04-01 2020-03-31 02305279 bus:HighestPaidDirector 2020-04-01 2021-03-31 02305279 bus:HighestPaidDirector 2019-04-01 2020-03-31 02305279 bus:FRS102 2020-04-01 2021-03-31 02305279 bus:Audited 2020-04-01 2021-03-31 02305279 bus:FullAccounts 2020-04-01 2021-03-31 02305279 bus:LargeMedium-sizedCompaniesRegimeForAccounts 2020-04-01 2021-03-31 02305279 bus:PrivateLimitedCompanyLtd 2020-04-01 2021-03-31 02305279 bus:OrdinaryShareClass1 2021-03-31 02305279 bus:OrdinaryShareClass1 2020-03-31 02305279 core:LandBuildings core:OwnedOrFreeholdAssets 2020-04-01 2021-03-31 02305279 core:ComputerSoftware 2020-03-31 02305279 core:ComputerSoftware 2020-04-01 2021-03-31 02305279 core:ComputerSoftware 2021-03-31 02305279 core:OfficeEquipment 2020-03-31 02305279 core:OfficeEquipment 2020-04-01 2021-03-31 02305279 core:OfficeEquipment 2021-03-31 02305279 core:ShareCapitalOrdinaryShares 2020-04-01 2021-03-31
COMPANY REGISTRATION NUMBER: 02305279
C.F. Capital Plc
Financial Statements
31 March 2021
C.F. Capital Plc
Financial Statements
Year ended 31 March 2021
Contents
Page
Strategic report
1
Directors' report
3
Independent auditor's report to the members
5
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13
C.F. Capital Plc
Strategic Report
Year ended 31 March 2021
BUSINESS REVIEW AND PRINCIPAL ACTIVITY The principal activities of the company (CF) during the year were the broking and funding of office technology and equipment for businesses. During the year, CF ceased it's operations in the funding of office technology and equipment for businesses and will solely concentrate on the broking of technology and office equipment leases. This is seen as a positive change to remove risks associated with 'own book funding' including potential bad debts and negative cash flows. It also enables CF to explore new opportunities and further develop the business for the future. CF reports a turnover of £20.8m achieving a gross profit of 8.36% in line with the previous year (2020 8.53%). This is considered adequate given the impact COVID-19 pandemic has had on this company and on the majority of businesses worldwide. Well established relationships remain with funders and suppliers to aid the company to sustain sufficient level of turnover in the current environment. Effective management cost controls have continued, which has been vital in the current environment, reducing administrative costs by 25.3%. This, along with the support received from the Coronavirus Job Retention Scheme, has helped to fund CF's operations whilst retaining staff and minimise the loss generated in the year.
BUSINESS ENVIRONMENT AND STRATEGY CF's working capital requirements are met from profits retained within the business. CF's focus and strengthening of the existing controls and processes in place has maintained CF's reputation and effectiveness within the market. CF continues to seek to develop new marketing and promotional products in relation to finance and operating lease income. CF aims to do this through continued marketing and feels that adequate finance is in place to take advantage of business opportunities. There were no significant changes in the operation of CF's business during the year under review, other than mentioned above, and no significant changes are anticipated in the coming year.
PRINCIPAL RISKS AND UNCERTAINTIES The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls. All policies are subject to Board approval and ongoing review by management. Compliance with regulation, legal and ethical standards is a priority for CF. The principal risks arise from a drop in potential customers due to decrease in their financial positions, funders not accepting new deals and the potential of deals going bad and commissions being refunded. After making enquiries, the directors have a reasonable expectation that CF has adequate resources to continue in existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and the accounts. The directors consider the state of affairs to be satisfactory at 31st March 2021. The COVID-19 pandemic created uncertainty for the company, but CF will continue to take advantage of all Government Support Measures available and implement effective management and controls. These, coupled with other financial support available within the group, enables the directors to forecast a sustained position in the coming 12 months.
FINANCIAL RISK MANAGEMENT CF's principal methods of financing comprise bank balances, trade creditors and trade debtors. The main purpose of these is to finance and raise funds for the company's operations. Due to the nature of the financing methods used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financing methods concerned is shown below. In respect of bank balances the liquidity risk is managed by maintaining a positive cash balance and making use of money market facilities where excess funds are available. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
This report was approved by the board of directors on 27 September 2021 and signed on behalf of the board by:
Mr D Allen
Company Secretary
Registered office:
Capital House
Raynham Road
Bishops Stortford
Hertfordshire
CM23 5TT
C.F. Capital Plc
Directors' Report
Year ended 31 March 2021
The directors present their report and the financial statements of the company for the year ended 31 March 2021 .
Directors
The directors who served the company during the year were as follows:
Mr A Percy
Mr M Yiannakou
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Greenhouse gas emissions and energy consumption
The company is not required to report streamlined energy and carbon reporting disclosures as it is not a large company as defined by the Companies Act 2006.
Disclosure of information in the strategic report
Details of the business review and future developments of C.F. Capital Plc are discussed in the Strategic Report.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards 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 the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting 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 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 27 September 2021 and signed on behalf of the board by:
Mr D Allen
Company Secretary
Registered office:
Capital House
Raynham Road
Bishops Stortford
Hertfordshire
CM23 5TT
C.F. Capital Plc
Independent Auditor's Report to the Members of C.F. Capital Plc
Year ended 31 March 2021
Opinion
We have audited the financial statements of C.F. Capital Plc (the 'company') for the year ended 31 March 2021 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows 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 FRS 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: - give a true and fair view of the state of the company's affairs as at 31 March 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 for opinion
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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' 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 company's ability to continue as a going concern for a period of at least twelve 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
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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. 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: Based on our understanding of the company and industry, we identified the principal risks of non-compliance with laws and regulations and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, FRS102, employment laws, contract law, General Data Protection Regulations and UK tax legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks related to potential reduction in customers due to adverse financial positions, lease funders not accepting new deals, fraudulent transactions and the potential of refundable commissions due to funder bad.debt. This may lead to an overstatement of profits, such as manipulation of work in progress and understatement of of expenses, which in itself raises shareholders expectations. Audit procedures performed by the audit team included: - Audit testing in different sections in order to check the compliance with applicable regulations and discussions with key management including consideration of known or suspected instances of non-compliance with laws, regulations and fraud. - Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, significant one-off amounts or posted by senior management. - Challenging and validating the reasonableness and judgement of any key management assumptions with particular focus on work in progress, trade debtors, depreciation and accruals as these are the key accounting estimates. 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. There are inherent limitations on the audit procedure described above. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations or through collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Gary Till
(Senior Statutory Auditor)
For and on behalf of
Abbots
Chartered Certified Accountants & Statutory Auditor
Printing House
66 Lower Road
Harrow
HA2 0DH
27 September 2021
C.F. Capital Plc
Statement of Comprehensive Income
Year ended 31 March 2021
2021
2020
Continuing operations
Discont'd operations
Total
Continuing operations
Discont'd operations
Total
Note
£
£
£
£
£
£
Turnover
4
20,675,073
177,121
20,852,194
34,970,816
396,062
35,366,878
Cost of sales
18,948,443
160,430
19,108,873
32,046,099
302,664
32,348,763
-------------
----------
-------------
-------------
----------
-------------
Gross profit
1,726,630
16,691
1,743,321
2,924,717
93,398
3,018,115
Administrative expenses
2,017,813
87,351
2,105,164
2,755,138
63,032
2,818,170
Other operating income
5
262,588
–
262,588
–
–
–
------------
--------
------------
------------
--------
------------
Operating (loss)/profit
6
( 28,595)
( 70,660)
( 99,255)
169,579
30,366
199,945
Interest payable and similar expenses
10
–
25,382
25,382
5
31,734
31,739
------------
--------
------------
------------
--------
------------
(Loss)/profit before taxation
( 28,595)
( 96,042)
( 124,637)
169,574
( 1,368)
168,206
Tax on (loss)/profit
11
( 182,773)
( 18,248)
( 201,021)
73,744
( 260)
73,484
----------
--------
----------
----------
-------
----------
Profit for the financial year
154,178
( 77,794)
76,384
95,830
( 1,108)
94,722
----------
--------
----------
----------
-------
----------
Revaluation of tangible assets
30,971
( 44,770)
Reclassification from revaluation reserve to profit and loss account
–
138,113
Tax relating to components of other comprehensive income
( 26,019)
( 82,394)
--------
----------
Other comprehensive income for the year
4,952
10,949
--------
----------
Total comprehensive income for the year
81,336
105,671
--------
----------
C.F. Capital Plc
Statement of Financial Position
31 March 2021
2021
2020
Note
£
£
£
£
Fixed assets
Intangible assets
13
96,911
21,615
Tangible assets
14
1,337,380
1,376,506
------------
------------
1,434,291
1,398,121
Current assets
Stocks
15
187,001
461,860
Debtors
16
417,767
1,034,469
Cash at bank and in hand
168,682
605,971
----------
------------
773,450
2,102,300
Creditors: amounts falling due within one year
17
1,076,507
2,281,119
------------
------------
Net current liabilities
303,057
178,819
------------
------------
Total assets less current liabilities
1,131,234
1,219,302
Creditors: amounts falling due after more than one year
18
–
229,947
Provisions
Taxation including deferred tax
19
142,937
82,394
------------
------------
Net assets
988,297
906,961
------------
------------
Capital and reserves
Called up share capital
23
50,040
50,040
Revaluation reserve
24
356,210
351,258
Profit and loss account
24
582,047
505,663
----------
----------
Shareholders funds
988,297
906,961
----------
----------
These financial statements were approved by the board of directors and authorised for issue on 27 September 2021 , and are signed on behalf of the board by:
Mr A Percy
Director
Company registration number: 02305279
C.F. Capital Plc
Statement of Changes in Equity
Year ended 31 March 2021
Called up share capital
Revaluation reserve
Profit and loss account
Total
Note
£
£
£
£
At 1 April 2019
50,040
478,422
476,828
1,005,290
Profit for the year
94,722
94,722
Other comprehensive income for the year:
Revaluation of tangible assets
14
–
( 44,770)
–
( 44,770)
Reclassification from revaluation reserve to profit and loss account
–
–
138,113
138,113
Tax relating to components of other comprehensive income
11
–
( 82,394)
–
( 82,394)
--------
----------
----------
------------
Total comprehensive income for the year
–
( 127,164)
232,835
105,671
Dividends paid and payable
12
–
–
( 204,000)
( 204,000)
--------
----------
----------
------------
Total investments by and distributions to owners
–
–
( 204,000)
( 204,000)
At 31 March 2020
50,040
351,258
505,663
906,961
Profit for the year
76,384
76,384
Other comprehensive income for the year:
Revaluation of tangible assets
14
–
30,971
–
30,971
Tax relating to components of other comprehensive income
11
–
( 26,019)
–
( 26,019)
--------
----------
----------
------------
Total comprehensive income for the year
–
4,952
76,384
81,336
--------
----------
----------
------------
At 31 March 2021
50,040
356,210
582,047
988,297
--------
----------
----------
------------
C.F. Capital Plc
Statement of Cash Flows
Year ended 31 March 2021
2021
2020
£
£
Cash flows from operating activities
Profit for the financial year
76,384
94,722
Adjustments for:
Depreciation of tangible assets
79,588
77,010
Amortisation of intangible assets
16,309
885
Government grant income
( 262,588)
–
Interest payable and similar expenses
25,382
31,739
(Gains)/loss on disposal of tangible assets
( 24,444)
2,361
Tax on (loss)/profit
( 201,021)
73,484
Accrued income
( 161,966)
( 250,127)
Changes in:
Stocks
274,859
( 71,266)
Trade and other debtors
616,702
1,667,433
Trade and other creditors
( 782,756)
( 592,172)
----------
------------
Cash generated from operations
( 343,551)
1,034,069
Interest paid
( 25,382)
( 31,739)
Tax received/(paid)
162,061
( 214,498)
----------
------------
Net cash (used in)/from operating activities
( 206,872)
787,832
----------
------------
Cash flows from investing activities
Purchase of tangible assets
( 9,492)
( 14,299)
Proceeds from sale of tangible assets
24,445
( 1)
Purchase of intangible assets
( 91,605)
( 22,500)
----------
------------
Net cash used in investing activities
( 76,652)
( 36,800)
----------
------------
Cash flows from financing activities
Proceeds from borrowings
( 416,353)
( 74,679)
Government grant income
262,588
–
Dividends paid
–
( 204,000)
----------
------------
Net cash used in financing activities
( 153,765)
( 278,679)
----------
------------
Net (decrease)/increase in cash and cash equivalents
( 437,289)
472,353
Cash and cash equivalents at beginning of year
605,971
133,618
----------
----------
Cash and cash equivalents at end of year
168,682
605,971
----------
----------
C.F. Capital Plc
Notes to the Financial Statements
Year ended 31 March 2021
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Capital House, Raynham Road, Bishops Stortford, Hertfordshire, CM23 5TT.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
Operating lease receivables
Operating lease receivables are included in debtors at the cost of the equipment less amounts charged against rentals to date. Leasing income from operating leasing is credited to the profit and loss account using the actuarial before tax method in proportion to the net funds invested. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances .
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Computer software
-
Over 4 years straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property
-
Over 50 years
Equipment, fixtures and fittings
-
Over 5 years straight line
An amount equal to the excess of the annual depreciation charge on revalued assets over the original cost depreciation charge on those assets is transferred annually from the revaluation reserve to retained earnings.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stock and work in progress
Work in progress is the direct costs of assets acquired for sale under finance lease agreements, the terms and contracts for which were not completed at the balance sheet date. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2021
2020
£
£
Sale of office equipment
20,675,073
34,970,816
Leasing of office equipment
177,121
396,062
--------------
--------------
20,852,194
35,366,878
--------------
--------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2021
2020
£
£
Government grant income
262,588
–
----------
----
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2021
2020
£
£
Amortisation of intangible assets
16,309
885
Depreciation of tangible assets
79,588
77,010
(Gains)/loss on disposal of tangible assets
( 24,444)
2,361
Impairment of trade debtors
87,351
69,131
--------
--------
7. Auditor's remuneration
2021
2020
£
£
Fees payable for the audit of the financial statements
27,000
26,542
--------
--------
Fees payable to the company's auditor and its associates for other services:
Taxation compliance services
17,711
9,868
Other non-audit services
32,165
19,079
--------
--------
49,876
28,947
--------
--------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2021
2020
No.
No.
Administrative staff
52
69
Management staff
2
2
----
----
54
71
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2021
2020
£
£
Wages and salaries
2,232,145
3,462,626
Social security costs
236,850
402,842
Other pension costs
98,979
71,174
------------
------------
2,567,974
3,936,642
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2021
2020
£
£
Remuneration
438,487
733,818
Company contributions to defined contribution pension plans
7,002
4,349
----------
----------
445,489
738,167
----------
----------
Remuneration of the highest paid director in respect of qualifying services:
2021
2020
£
£
Aggregate remuneration
194,152
185,777
----------
----------
10. Interest payable and similar expenses
2021
2020
£
£
Interest on banks loans and overdrafts
25,382
31,739
--------
--------
11. Tax on (loss)/profit
Major components of tax (income)/expense
2021
2020
£
£
Current tax:
UK current tax (income)/expense
( 235,545)
73,484
Deferred tax:
Origination and reversal of timing differences
34,524
–
----------
--------
Tax on (loss)/profit
( 201,021)
73,484
----------
--------
Tax recognised as other comprehensive income or equity
The aggregate current and deferred tax relating to items recognised as other comprehensive income or equity for the year was £ 26,019 (2020: £ 82,394 ).
Reconciliation of tax (income)/expense
The tax assessed on the (loss)/profit on ordinary activities for the year is lower than (2020: higher than) the standard rate of corporation tax in the UK of 19 % (2020: 19 %).
2021
2020
£
£
(Loss)/profit on ordinary activities before taxation
( 124,637)
168,206
----------
----------
(Loss)/profit on ordinary activities by rate of tax
( 23,681)
31,959
Effect of expenses not deductible for tax purposes
32,531
94,791
Effect of capital allowances and depreciation
( 244,395)
( 53,266)
Deferred tax movement in year
34,524
–
----------
----------
Tax on (loss)/profit
( 201,021)
73,484
----------
----------
12. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2021
2020
£
£
Equity dividends on ordinary shares
–
204,000
----
----------
13. Intangible assets
Computer Software
£
Cost
At 1 April 2020
22,500
Additions
91,605
----------
At 31 March 2021
114,105
----------
Amortisation
At 1 April 2020
885
Charge for the year
16,309
----------
At 31 March 2021
17,194
----------
Carrying amount
At 31 March 2021
96,911
----------
At 31 March 2020
21,615
----------
14. Tangible assets
Land and buildings
Equipment
Total
£
£
£
Cost or valuation
At 1 April 2020
1,275,000
898,679
2,173,679
Additions
–
9,492
9,492
Disposals
–
( 1,754)
( 1,754)
Revaluations
30,971
–
30,971
------------
----------
------------
At 31 March 2021
1,305,971
906,417
2,212,388
------------
----------
------------
Depreciation
At 1 April 2020
–
797,173
797,173
Charge for the year
30,971
48,617
79,588
Disposals
–
( 1,753)
( 1,753)
------------
----------
------------
At 31 March 2021
30,971
844,037
875,008
------------
----------
------------
Carrying amount
At 31 March 2021
1,275,000
62,380
1,337,380
------------
----------
------------
At 31 March 2020
1,275,000
101,506
1,376,506
------------
----------
------------
Included within Freehold Property is land valued at £345,857 (historical cost £227,500) that is not depreciated and buildings valued at £929,143 (historical cost £613,848). The directors have considered the value of the property as at 31st March 2021 and conclude that there has been no material change in the market value from the previous year.
15. Stocks
2021
2020
£
£
Work in progress
187,001
461,860
----------
----------
16. Debtors
2021
2020
£
£
Trade debtors
139,498
378,378
Prepayments and accrued income
42,724
75,675
Corporation tax repayable
235,545
–
Operating lease receivables
–
476,093
Other debtors
–
104,323
----------
------------
417,767
1,034,469
----------
------------
The debtors above include the following amounts falling due after more than one year:
2021
2020
£
£
Operating lease receivables
–
273,349
----
----------
The cost of the assets acquired for leasing under operating leases during the year was £nil (2020: £159,645). No amounts fall due after more than five years.
17. Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans and overdrafts
–
186,406
Trade creditors
610,409
1,157,280
Accruals and deferred income
221,129
383,095
Corporation tax
–
73,484
Social security and other taxes
244,969
480,854
------------
------------
1,076,507
2,281,119
------------
------------
The bank loans are secured by a fixed and floating charge over all current and future assets of the company and a first legal mortgage over the freehold property. The bank loans advanced against operating lease receivables are secured against the operating leases to which the loans relate.
18. Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
–
229,947
----
----------
The bank loans are secured by a fixed and floating charge over all current and future assets of the company and a first legal mortgage over the freehold property. The bank loans advanced against operating lease receivables are secured against the operating leases to which the loans relate.
19. Provisions
Deferred tax (note 20)
£
At 1 April 2020
82,394
Charge against provision
60,543
----------
At 31 March 2021
142,937
----------
20. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2021
2020
£
£
Included in provisions (note 19)
142,937
82,394
----------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2021
2020
£
£
Accelerated capital allowances
34,524
–
Revaluation of tangible assets
108,413
82,394
----------
--------
142,937
82,394
----------
--------
21. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 98,979 (2020: £ 71,174 ).
22. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2021
2020
£
£
Recognised in other operating income:
Government grants recognised directly in income
262,588
–
----------
----
The grant income comprises claims made under the Government's Coronavirus Job Retention Scheme.
23. Called up share capital
Issued, called up and fully paid
2021
2020
No.
£
No.
£
Ordinary shares of £ 1 each
50,040
50,040
50,040
50,040
--------
--------
--------
--------
24. Reserves
Called up share capital - This reserve represents the nominal value of shares that have been issued . Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income. Profit and loss account - This reserve records retained earnings and accumulated losses.
25. Analysis of changes in net debt
At 1 Apr 2020
Cash flows
At 31 Mar 2021
£
£
£
Cash at bank and in hand
605,971
(437,289)
168,682
Debt due within one year
(186,406)
186,406
–
Debt due after one year
(229,947)
229,947
–
----------
----------
----------
189,618
( 20,936)
168,682
----------
----------
----------
26. Operating leases
As lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
2021
2020
£
£
Not later than 1 year
48,734
51,506
Later than 1 year and not later than 5 years
30,182
44,451
--------
--------
78,916
95,957
--------
--------
As lessor
The total future minimum lease payments receivable under non-cancellable operating leases are as follows:
2021
2020
£
£
Not later than 1 year
–
202,745
Later than 1 year and not later than 5 years
–
273,349
----
----------
–
476,094
----
----------
27. Related party transactions
C F Capital Plc is a 100% owned subsidiary of C.F. Capital Holdings Limited. C.F. Capital Holdings Limited intends to prepare consolidated accounts therefore C.F. Capital Holdings Limited has taken advantage of the exemption contained within paragraph 33.1A of FRS 102 which eliminates the requirement to report related party balances. Transactions entered into during the year, under normal commercial terms, with companies in which there are common interests were as follows:- Fortis Corporate Lending Limited (common control) At the balance sheet date £nil (2020 - £92,643) was owed to CF in respect of a short term interest free loan.
28. Controlling party
100% of the share capital is owned by C.F. Capital Holdings Limited. The directors consider this to be the ultimate parent company. The group consolidated accounts can be obtained from the company's registered office; the address is stated on page 2 of these accounts.