Fileturn Limited - Limited company accounts 20.1
Fileturn Limited - Limited company accounts 20.1
REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2021 |
FOR |
FILETURN LIMITED |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2021 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
FILETURN LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2021 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and |
Statutory Auditors |
Russell House |
140 High Street |
Edgware |
Middlesex |
HA8 7LW |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2021 |
The directors present their strategic report for the year ended 31 March 2021. |
REVIEW OF BUSINESS |
The company is an innovative interior fit-out contractor. |
Turnover reduced substantially from the previous year, being affected by the Covid 19 pandemic initial lockdown in the first half of the year and as well as the subsequent lockdowns in the second half. |
The Board acted quickly to mitigate the impact by aligning the size of the workforce with the revised levels of operations either through redundancies or furlough. Despite a 50% decrease in turnover, the company only suffered a post tax loss of £0.28m, which the Board consider a remarkable achievement given the effect of the global pandemic. The values are detailed in the Key performance indicators section of this report. |
The company has taken advantage of the CBILS bank loan by securing £2.50m in additional funding although at the time of writing none of the funds have been utilised and remain on deposit. |
The resultant is an increase of total assets less current liabilities of £2.26m |
Fileturn has felt no effect from Brexit in year ending 2021 nor thus far in year ending 2022 |
Future developments |
Although Covid 19 has had an effect on the operations of the company, the board are pleased to report that all core staff were retained throughout the pandemic we are now actively recruiting for delivery staff to meet the demands of our pipeline of projects, both secured and in negotiation. |
The company continues to work with major brands specialising in rapid expansion and roll out programmes as well as seeking new markets for it's services. At the time of writing, the company has a strong pipeline of projects with existing and new emerging clients in negotiation for numerous national restaurant and hotel brands, all of which seek to take advantage of the upturn in demand following the pandemic by taking new sites which have become available following numerous restaurant and hotel closures. Both present a great opportunity for Fileturn. In addition, we continue to expand into new markets with the most prevalent being high end residential. |
Key performance indicators |
The key financial indicators over the last two years are as follows: |
2021 | 2020 |
Turnover (£'000) | 19,034 | 42,337 |
Gross profit margin (%) | 13.8% | 11.5% |
Operating (loss)/profit (£'000) | (547) | 1.04 |
Average number of office/professional staff | 40 | 63 |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2021 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company's principal financial instruments comprise bank balances, bank overdrafts, bank loans and trade creditors. The main purpose of these instruments is to raise funds for the company's operations and to fund these. |
The company's approach to managing other risks applicable to the financial instruments concerned is as shown below. |
The company seeks to win profitable work through a large number of bids. Our success depends upon our ability to identify, price and execute the right volume and quality of bids to maintain a profitable, sustainable order book. All bids are subject to rigorous estimating and tendering processes within a controlled framework and the company has defined delegated authority levels for approving all tenders. |
In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility. |
Banking facilities to fund contracted work are arranged in a controlled fashion with the company's bankers and covenants relating thereto are complied with. |
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
The company is also exposed to risk on the pricing of its contracts in terms of competitiveness. The risks are managed by regular review of contracts and margins pro-actively as well as responding to market forces by competitors and environment. |
The Board continues to invest in training and a management structure to oversee delivery and quality control of projects. |
ON BEHALF OF THE BOARD: |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2021 |
The directors present their report with the financial statements of the company for the year ended 31 March 2021. |
PRINCIPAL ACTIVITY |
The company is an innovative interior fit-out contractor. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2021. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2020 to the date of this report. |
Other changes in directors holding office are as follows: |
DONATIONS AND EXPENDITURE |
During the year the company made charitable donations of £NIL (2020: £3,297). |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 of 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 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 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. |
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered the impact of the COVID-19 outbreak and the measures taken to contain it on the company and whilst the ultimate impact cannot currently be quantified, given the nature of the company's activities the directors do not believe that the impact will be significant. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director 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 auditors are aware of that information. |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2021 |
AUDITORS |
The auditors, The Paris Partnership LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
RSM UK Audit LLP ceased to be the auditor on 1 May 2020. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FILETURN LIMITED |
Opinion |
We have audited the financial statements of Fileturn Limited (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 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 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: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2021 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FILETURN LIMITED |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page four, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FILETURN LIMITED |
Auditors' 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 a Report of the Auditors 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. |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company. |
Our approach was as follows: |
- | We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation. |
- | We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance. |
- | We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. |
- | We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. |
- | Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. |
As part of an audit in accordance with ISAs (UK) we exercise professional judgement 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 purposes of expressing an opinion on the effectiveness of the company's 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FILETURN LIMITED |
- | 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. |
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 Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants and |
Statutory Auditors |
Russell House |
140 High Street |
Edgware |
Middlesex |
HA8 7LW |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 MARCH 2021 |
2021 | 2020 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
(907,153 | ) | 1,039 |
Other operating income |
OPERATING (LOSS)/PROFIT | 7 | ( |
) |
Interest receivable and similar income |
(547,925 | ) | 83,904 |
Interest payable and similar expenses | 8 | ( |
) | ( |
) |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 9 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
STATEMENT OF FINANCIAL POSITION |
31 MARCH 2021 |
2021 | 2020 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 | ( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Share premium | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2021 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 April 2019 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 March 2020 |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 March 2021 |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2021 |
1. | STATUTORY INFORMATION |
Fileturn Limited is a |
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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The presentational currency of the financial statements is the Pound Sterling (£). |
Going concern |
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered the impact of the COVID-19 outbreak and the measures taken to contain it on the company and whilst the ultimate impact cannot currently be quantified, given the nature of the company's activities the directors do not believe that the impact will be significant. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 33.7. |
The financial statements of the company are consolidated in the financial statements of Fileturn Topco Limited. These consolidated financial statements are available from its registered office, Fileturn House, Brighton Road, Redhill, Surrey, England, RH1 6QZ |
Construction contracts |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
When the outcome of a construction contract can be estimated reliably and it is probable that the contract will be profitable, turnover and costs are recognised over the period of the contract. |
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. |
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately. |
When the outcome of a construction contract cannot be estimated reliably, contract turnover is recognised only to the extent of contract costs that are recoverable and the contract costs are expensed as incurred. |
The company uses the "percentage of completion method" to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded for contract costs in determining the stage of completion. These costs are presented as amounts recoverable on contracts, provided it is probable they will be recovered. |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
2. | ACCOUNTING POLICIES - continued |
Intangible assets other than goodwill |
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. |
Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives. |
Computer software | 33% reducing balance |
Tangible fixed assets |
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. |
Depreciation is recognised so as to write off the costs of assets less their residual values over their useful lives on the following basis: |
Improvements to property | 25% reducing balance |
Fixtures and fittings | 25% reducing balance |
Computer equipment | 33% reducing balance |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. |
Basic financial assets |
Basic financial assets, which include trade, group and other debtors are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. |
Impairment of financial assets |
Financial assets are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occured after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial assets and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including trade and other creditors, and amounts owed to fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire. |
Equity instruments |
Equity instruments issued by the company are recorded at the fair value of proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
2. | ACCOUNTING POLICIES - continued |
Provisions |
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and that obligation can be estimated reliably. |
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar expenses. |
Government grants |
Government grants are recognised where there is reasonable assurance that the grant will be received. Loans provided and/or guaranteed by government that represent market rates of interest are recorded at the amount of the proceeds received and recognised within Borrowings. Those loans provided and/or guaranteed by government that represent below market rates of interest are measured at inception at their fair value and recognised within Borrowings, with the differential to the proceeds received recorded within Deferred income and released to the relevant financial statement caption in the Income statement on an accruals basis. Grants that compensate the Company for expenses incurred are recognised in the Income statement in the relevant financial statement caption on an accruals basis in the periods in which the expenses are recognised. |
The Coronavirus Job Retention Scheme (CJRS) |
The CJRS was implemented by the Government of the United Kingdom from March 1, 2020, where those employees designated as being 'furloughed workers' were eligible for up to 80 per cent of their wage costs paid up to a maximum of £2,500 per month. During the year the company received £338,394 under the scheme which has been recognised as grant income on an accruals basis. The Company is obliged to continue to pay the associated social security costs and employer pension contributions. |
Coronavirus Business Interruption Loan Scheme (CBILS) |
The company received a CBILS loan of £2.50 million, payable wthin 6 years, with interest incurred at 4.9% over base rate. Capital repayments are deferred by 12 months and the initial 12 months interest payments made by the Government will be recognised as grant income. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant, Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Key sources of estimation uncertainty |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Construction contracts |
The company uses the percentage of completion method to determine the appropriate amount of revenue to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded for contract costs in determining the stage of completion. |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
4. | TURNOVER |
An analysis on the company's turnover is as follows: |
2021 | 2020 |
£ | £ |
Turnover analysed by class of business |
Turnover arising from the company's principal activity | 19,034,078 | 42,336,616 |
2021 | 2020 |
£ | £ |
Other revenue |
Interest income | - | 82,865 |
Government grants | 359,228 | - |
All of the company's turnover is derived from sales within the UK. |
5. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2021 | 2020 |
Directors | 5 | 6 |
Office staff | 30 | 46 |
Professional staff | 5 | 11 |
6. | DIRECTORS' EMOLUMENTS |
2021 | 2020 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2021 | 2020 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
7. | OPERATING (LOSS)/PROFIT |
The operating loss (2020 - operating profit) is stated after charging: |
2021 | 2020 |
£ | £ |
Depreciation - owned assets |
Computer software amortisation |
Auditors' remuneration |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Bank interest |
CBILS interest |
9. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Over Provision prior years | (188,826 | ) | - |
Total current tax | ( |
) |
Deferred tax | ( |
) | ( |
) |
Tax on (loss)/profit | ( |
) |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2021 | 2020 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of (2020 - |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Capital allowances in excess of depreciation | - | ( |
) |
Deferred tax | (3,186 | ) | (2,081 | ) |
Total tax (credit)/charge | (292,293 | ) | 17,826 |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
10. | CONSTRUCTION CONTRACTS |
2021 | 2020 |
£ | £ |
Contracts in progress at the reporting date |
Gross amounts owed by contract customers included in debtors | 486,785 | 2,036,235 |
Gross amounts owed to contract customers included in creditors | (2,014,557 | ) | (830,418 | ) |
Contract revenue recognised |
Contract costs incurred plus recognised profit less recognised losses to date | 19,034,078 | 42,336,616 |
11. | INTANGIBLE FIXED ASSETS |
Computer |
software |
£ |
COST |
At 1 April 2020 |
and 31 March 2021 |
AMORTISATION |
At 1 April 2020 |
Amortisation for year |
At 31 March 2021 |
NET BOOK VALUE |
At 31 March 2021 |
At 31 March 2020 |
12. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | and | Computer |
property | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2020 |
and 31 March 2021 |
DEPRECIATION |
At 1 April 2020 |
Charge for year |
At 31 March 2021 |
NET BOOK VALUE |
At 31 March 2021 |
At 31 March 2020 |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Amount recoverable on |
contracts |
Other debtors |
Tax |
Prepayments |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Trade creditors |
Amounts due on contracts | 2,014,557 | 830,418 |
Tax |
Social security and other taxes |
VAT | 2,311,402 | 881,199 |
Other creditors |
Accrued expenses |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans (see note 16) |
16. | LOANS AND OVERDRAFTS |
An analysis of the maturity of loans and overdrafts is given below: |
2021 | 2020 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
16. | LOANS AND OVERDRAFTS - continued |
2021 | 2020 |
£ | £ |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 416,667 | - |
17. | PROVISIONS FOR LIABILITIES |
2021 | 2020 |
£ | £ |
Deferred tax | 11,793 | 14,979 |
Other provisions | 123,504 | - |
Deferred | Remedial |
tax | works |
£ | £ |
Balance at 1 April 2020 |
Provided during year |
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 31 March 2021 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary | 10p | 8,500 | 8,500 |
Ordinary B | 10p | 1,500 | 1,500 |
10,000 | 10,000 |
The company's Ordinary and Ordinary B shares carry full voting rights and the rights to receive dividends as voted, which may be declared on one class of shares only, or on both classes of shares, at the discretion of the company and its directors. The company's Ordinary and Ordinary B shares rank pari passu with regard to the rights on winding up or other return of capital (other than a redemption of any redeemable shares) and to participate fully in the assets of the company available for distribution among the members. |
19. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 April 2020 | 1,168,587 |
Deficit for the year | ( |
) | ( |
) |
At 31 March 2021 | 888,738 |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
20. | RELATED PARTY TRANSACTIONS |
Transaction with related parties |
During the year the company entered into the following transactions with related parties: |
Sales | Purchases |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Entities under common control | - | - | - | 49,769 |
Key management personnel | - | - | - | - |
Other related parties | - | - | - | - |
Rent, service and vehicle hire | Interest payable |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Entities under common control | 73,194 | - | - | - |
Entities with common directorships | 201,622 | 202,048 | - | - |
The following amounts were outstanding at the reporting end date: |
2021 | 2020 |
Amount due to related parties | £ | £ |
Entities under common control | 8,585 | 416,055 |
Entities with common directorships | - | 3,359 |
2021 | 2020 |
Amount due from related parties | £ | £ |
Entities under common control | 5,089 | 454 |
Entities with common directorships | 16,896 | - |
21. | ULTIMATE CONTROLLING PARTY |
The company is a wholly owned subsidiary of Fileturn Topco Limited which produces group accounts incorporating the results of Fileturn Limited. |
Copies of the consolidated accounts of Fileturn Topco Limited are publicly available and can be obtained from the company's registered office, Fileturn House, Brighton Road, Redhill, Surrey, England, RH1 6QZ. |
The ultimate controlling party is Mr A J Hart by virtue of his 100% ownership of Fileturn Topco Limited. |