A1 Comms Limited - Period Ending 2021-04-30
A1 Comms Limited - Period Ending 2021-04-30
Registration number:
A1 Comms Limited
for the Period from 1 July 2020 to 30 April 2021
A1 Comms Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
A1 Comms Limited
Company Information
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Directors |
P Sisson A Sisson |
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Registered office |
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Bankers |
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Auditors |
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A1 Comms Limited
Strategic Report for the period from 1 July 2020 to 30 April 2021
The directors present their strategic report for the period from 1 July 2020 to 30 April 2021.
Fair review of the business
Turnover for 2020/21 increased from £148m (2020) to £157m (2021) despite decreasing the Financial Year to 10 months, that’s an increase of £5.5m a month and a reflection of the growth A1 Comms has achieved in the year. Covid 19 lockdowns and subsequent social distancing measures created challenges for our High Street estate, but this was offset by strong online sales.
The financial year end has been reduced to 10 months to coincide with the sale of the Go Mobile Retail estate that completed April 2021. This is a fantastic opportunity for A1 to streamline its operations and concentrate on what we do best, online sales. A1 is now purely an online sales business selling under the brands of buymobiles.net, affordable mobiles.co.uk and phones.co.uk and powering our online partners via Mobile Shop connectivity solution.
Our efforts were recognised by being awarded the Uswitch Mobile Reseller of the year for 2021.
The group's key financial and other performance indicators during the period were as follows:
|
Financial KPIs |
Unit |
2021 |
2020 |
|
Turnover |
£,000 |
156,780 |
147,563 |
|
EBITDA |
£,000 |
1,468 |
74 |
Our Customers
At A1 Comms offering the best support and service to our customers is at the heart of every decision we make, we believe that only by embracing this philosophy can we continue to build on our 20+ years of successful trading and maintain the excellent relationships we have fostered with our customers, partners and suppliers alike.
At the ‘front line’ of this relationship is our dedicated team of Customer Service professionals - based at our Alfreton site - providing high quality service across all our brands. We offer a variety of contact mediums – Telephone, e-mail, Live Chat, Social Media - to ensure that our customers can engage with us in the way that suits them and enjoy the best experience right from placing their order through to resolving any problems or queries they may have throughout the customer lifecycle.
We provide ongoing training and development for all team members, believing that only by investing in our people can we ensure that we retain our position as the premier independent mobile phone retailer in the U.K. for customer service.
In order to ensure our continuous improvement and to benchmark ourselves against our competitors, we engage with our customers through a variety of independent feedback and customer service metrics, such as NPS scoring and Trustpilot. Our inherent customer focus has meant that we currently enjoy an industry leading ‘Excellent’ rating with Trustpilot on all brands, with scores of 4.9/5 (phones.co.uk), 4.5/5 (affordablemobiles.co.uk). and 4.6/5 (buymobiles.net).
A1 Comms Limited
Strategic Report for the period from 1 July 2020 to 30 April 2021
Employees
Our people are essential to our success, future growth and our aim to build leading positions in our long-term growth plans. We continue to invest substantial time and effort to train, develop and retain employees who are passionate about our business and have highly rated expertise in all our key functional areas. Hearing their views on what we do well and what we can do better, is an important driver for improvement and retaining our best talent.
Suppliers
The directors recognise the importance the key role of our suppliers play in ensuring the availability of our stock portfolio ensures a better journey for our customers and that as a business we meet the high standards of conduct that we set ourselves. A1 Comms works with the leading UK mobile phone distributors including the mobile network operators. We aim to be fair and ethical in dealings with all our suppliers, pay them on agreed terms and be a collaborative and responsive partner.
Principal risks and uncertainties
There is an uncertain economic outlook and low levels of economic growth across the United Kingdom. The Group has continued to focus on maintaining an appropriate structure and strong cost control in order to ensure that it is well positioned to deal with this uncertainty.
The market continues to be competitive across phone networks and retailers. The increasing market share and development of smartphones requires a larger investment in phone purchases as consumers continue their demand for higher specification devices. Against this background however, the group is well placed to take advantage of its historic success and understanding of the market.
The Group has key relationships with certain mobile network operators and suppliers. The Group has moved to establish strong working and commercial relationships with these networks and suppliers to be able to drive economic value for them and to ensure the best possible offers are made to consumers.
The Group’s operations are dependent on key IT systems provided within the group. The Group continues to support investment in the IT infrastructure of the business.
Section 172(1) statement
During the period ended 30 April 2021, the directors consider both individually and collectively, that the decisions taken during the financial period have satisfied the requirements of S172(1) (a-f) of the Companies Act 2006 in acting in a way that it considers to be in good faith, would most likely promote thesuccess of the Company for the benefit of its members as a whole, and by having regard tostakeholders and matters set out in s172(1).
The following summarise how the Directors’ have fulfilled their duties:
Likely consequences of long term decisions
The directors and senior management team meet regularly and are responsible for the strategy and long-term vision of the Group. The Board understand the business and the ever-changing environment in which we operate, including in particular this year the challenges of navigating through the Covid 19 pandemic and to continue to supply Mobile phones to the general public. The disposal of the Go Mobile brand will allow us to streamline and focus our efforts on Digital sales going forward.
Our continued relationships with key networks and suppliers are vital to ensure that we are able to offer value for money to consumers and the board have continued to develop these relationships in order to strengthen our position in the market.
A1 Comms Limited
Strategic Report for the period from 1 July 2020 to 30 April 2021
The interest of company employees
The directors recognise that the Group’s employees are core to our business and delivery of strategic goals. The success of our business depends on attracting, retaining, and motivating employees.
From ensuring that we remain a responsible employer, from pay and benefits to health, safety and workplace environment, the Directors consider the implications of decisions on employees and the wider workplace, where relevant and feasible.
Business relationships
As noted above the delivery of our long-term strategy requires strong mutually beneficial relationships with suppliers and customers. The Board continuously reviews and approves the Group’s approach to these key relationships.
Impact on the community and the environment
The Board regularly review and take reasonable steps to minimise any detrimental impact the Group’s operations may have on the environment with the promotion of renewable energy sources where possible and electric/low emission vehicles.
Reputation for high standards of business conduct
The Group aims to maintain the highest possible standards of business conduct to ensure it can continue to meet the growing need for mobile phones and related accessories that are constantly evolving.
The directors and senior management team periodically review all areas of how the Group operates to ensure high standards are maintained within the Group and other business relationships.
Acting fairly between members of the company
The directors make decisions that are in line with the Group strategy whilst taking into account the impact on stakeholders. In doing so they act fairly between the members.
Approved by the
Director
A1 Comms Limited
Directors' Report for the Period from 1 July 2020 to 30 April 2021
The directors present their report and the for the period from 1 July 2020 to 30 April 2021.
Directors' responsibilities
The directors are responsible for preparing the Annual 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 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 apply them consistently; |
• | make judgements 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; and |
• | 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Director of the group
The directors who held office during the period were as follows:
Principal activity
The principal activity of the group is that of the retail sale of mobile communication products and services.
Financial instruments
Objectives and policies
The Group is exposed to the following risks from its use of financial instruments:
- Credit risk
- Liquidity risk
The Directors have overall responsibility for the establishment and oversight of the Groups risk management framework.
The exposure to the above risks are monitored by the Board of Directors as part of its daily management of the Group activities.
A1 Comms Limited
Directors' Report for the Period from 1 July 2020 to 30 April 2021
Price risk, credit risk, liquidity risk and cash flow risk
Credit risk
The Group's credit risk is primarily attributed to its trade receivables. The amounts presented in the balance sheet are net of projected clawbacks and any provision for doubtful debts. A provision for doubtful debts is made where it is considered that the full receivable amount may not be recovered.
Liquidity risk
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Loans comprise of facilities from financial institutions. The interest rate on loans from financial institutions are a mixture of fixed and variable, but the monthly repayments are fixed. The business manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Environmental report
The Group is committed to minimizing the carbon impact from its activities and is continually challenging the ways it is to be able to reduce this.
The Group has seen major changes to the work habits of employees during the period as a result of Covid-19. Despite restrictions being eased, the company has seen a sway towards employees continuing to work from home. There is now a far greater use of virtual meeting platforms which has reduced emissions associated with employee travel to meetings and on Company business. This has resulted in a much lower level of energy consumption at the Head Office.
The disposal of the 'Go Mobile' brand has also seen property leases being ended during the year and further reductions in the Group's energy consumption.
A1 Comms Limited
Directors' Report for the Period from 1 July 2020 to 30 April 2021
Emissions and energy consumption
Consumption data was determined by using invoices and meter data from suppliers and estimating fuel usage based on expenditure. Emissions were determined by applying the UK government conversion factors to the energy consumption values and aggregating the total.
Summary of greenhouse gas emissions and energy consumption for the period from 1 July 2020 to 30 April 2021:
|
Name and |
Unit of |
2021 |
2020 |
|
Emissions resulting from the combustion of gas and fuel (Scope 1) |
tCO2e |
|
|
|
Emissions resulting from the purchase of electricity (Scope 2) |
tCO2e |
|
|
|
Emissions resulting from business travel (Scope 3) |
tCO2e |
|
|
|
Energy consumption to calculate emissions |
kWh |
|
|
Intensity ratio
|
Intensity ratio (Scope 1 and 2 emissions per £m of turnover) Total CO2 emissions per £m revenue. During the period from 1 July 2020 to 30 April 2021 this was 0.29t (2020 - 0.9t). |
Approved by the
Director
A1 Comms Limited
Independent Auditor's Report to the Members of A1 Comms Limited
Opinion
We have audited the financial statements of A1 Comms Limited (the 'parent company') and its subsidiaries (the 'group') for the period from 1 July 2020 to 30 April 2021, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 30 April 2021 and of its profit for the period 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
|
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue. |
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|
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 included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
A1 Comms Limited
Independent Auditor's Report to the Members of A1 Comms Limited
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
|
• |
the Strategic Report and 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 our 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 and the Directors' Report.
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company 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 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor 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.
A1 Comms Limited
Independent Auditor's Report to the Members of A1 Comms Limited
We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:
• obtaining an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework;
• obtaining an understanding of the entity's policies and procedures and how the entity has complied with these, through discussions and walkthrough testing;
• obtaining an understanding of the entity's risk assessment process, including the risk of fraud;
• enquiring of management as to actual and potential fraud, litigation and claims;
• designing our audit procedures to respond to our risk assessment;
• performing audit testing over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business;
• assessing whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
• performing analytical procedures to identify any large, unusual or unexpected relationships.
Whilst considering how our audit work addressed the detection of irregularities, we also consider the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
A1 Comms Limited
Independent Auditor's Report to the Members of A1 Comms Limited
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.
For and on behalf of
5 Prospect Place
Millennium Way
Pride Park
DE24 8HG
A1 Comms Limited
Consolidated Profit and Loss Account for the Period from 1 July 2020 to 30 April 2021
|
Note |
Continuing operations |
Discontinued operations |
Total |
Continuing operations |
Discontinued operations |
Total |
|
|
Turnover |
|
|
|
|
|
|
|
|
Cost of sales |
( |
( |
( |
( |
( |
( |
|
|
Gross profit |
|
|
|
|
|
|
|
|
Administrative expenses |
( |
( |
( |
( |
( |
( |
|
|
Other operating income |
|
|
|
|
|
|
|
|
Operating profit/(loss) |
|
( |
|
|
( |
( |
|
|
Profit on disposal of operations |
- |
|
|
- |
- |
- |
|
|
Other interest receivable and similar income |
|
|
|
|
|
|
|
|
Interest payable and similar charges |
( |
( |
( |
( |
( |
( |
|
|
134,118 |
(657) |
133,461 |
(9,743) |
17,392 |
7,649 |
||
|
Profit/(loss) before tax |
|
|
|
|
( |
( |
|
|
Tax on profit/(loss) |
( |
|
( |
|
|
|
|
|
Profit/(loss) for the financial period |
|
|
|
|
( |
( |
|
|
Profit/(loss) attributable to: |
|||||||
|
Owners of the company |
|
|
|
|
( |
( |
A1 Comms Limited
(Registration number: 04455131)
Consolidated Balance Sheet as at 30 April 2021
|
Note |
30 April 2021 |
30 June 2020 |
|
|
Fixed assets |
|||
|
Intangible assets |
|
|
|
|
Tangible assets |
|
|
|
|
Investment property |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors due within one year |
|
|
|
|
Debtors due after one year |
10,404,716 |
6,724,776 |
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Profit and loss account |
|
|
|
|
Equity attributable to owners of the company |
|
|
|
|
Minority interests |
( |
( |
|
|
Total equity |
|
|
Approved and authorised by the
Director
A1 Comms Limited
(Registration number: 04455131)
Balance Sheet as at 30 April 2021
|
Note |
30 April 2021 |
30 June 2020 |
|
|
Fixed assets |
|||
|
Intangible assets |
|
|
|
|
Tangible assets |
|
|
|
|
Investment property |
|
|
|
|
Investments |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors due within one year |
|
|
|
|
Debtors due over one year |
10,404,716 |
6,724,776 |
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Profit and loss account |
|
|
|
|
Total equity |
|
|
The company made a profit after tax for the financial period of £1,948,030 (2020 - profit of £118,785).
Approved and authorised by the
Director
A1 Comms Limited
Consolidated Statement of Changes in Equity for the Period from 1 July 2020 to 30 April 2021
Equity attributable to the parent company
|
Share capital |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
|
|
At 1 July 2020 |
|
|
|
( |
|
|
Profit for the period |
- |
|
|
- |
|
|
Total comprehensive income |
- |
|
|
- |
|
|
Dividends |
- |
( |
( |
- |
( |
|
At 30 April 2021 |
|
|
|
( |
|
|
Share capital |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
|
|
At 1 April 2019 |
|
|
|
( |
|
|
Loss for the period |
- |
( |
( |
- |
( |
|
Total comprehensive income |
- |
( |
( |
- |
( |
|
Dividends |
- |
( |
( |
- |
( |
|
At 30 June 2020 |
|
|
|
( |
|
A1 Comms Limited
Statement of Changes in Equity for the Period from 1 July 2020 to 30 April 2021
|
Share capital |
Profit and loss account |
Total |
|
|
At 1 July 2020 |
|
|
|
|
Profit for the period |
- |
|
|
|
Total comprehensive income |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 30 April 2021 |
|
|
|
|
Share capital |
Profit and loss account |
Total |
|
|
At 1 April 2019 |
|
|
|
|
Profit for the period |
- |
|
|
|
Total comprehensive income |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 30 June 2020 |
|
|
|
A1 Comms Limited
Consolidated Statement of Cash Flows for the Period from 1 July 2020 to 30 April 2021
|
Note |
1 July 2020 to 30 April 2021 |
1 April 2019 to 30 June 2020 |
|
|
Cash flows from operating activities |
|||
|
Profit/(loss) for the period |
|
( |
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
(Profit)/loss on disposal of tangible assets |
( |
|
|
|
Profit from disposals of operations |
( |
- |
|
|
Finance income |
( |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
( |
|
|
Foreign exchange gains/losses |
( |
- |
|
|
|
|
||
|
Working capital adjustments |
|||
|
(Increase)/decrease in stocks |
( |
|
|
|
Increase in trade debtors |
( |
( |
|
|
Increase in trade creditors |
|
|
|
|
Increase in provisions |
|
|
|
|
Cash generated from operations |
( |
( |
|
|
Income taxes received/(paid) |
|
( |
|
|
Net cash flow from operating activities |
( |
( |
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
|
Acquisition of investment properties |
( |
( |
|
|
Proceeds from sale of operations |
100,000 |
- |
|
|
Net cash flows from investing activities |
|
( |
|
A1 Comms Limited
Consolidated Statement of Cash Flows for the Period from 1 July 2020 to 30 April 2021
|
Note |
1 July 2020 to 30 April 2021 |
1 April 2019 to 30 June 2020 |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Repayment of bank borrowing |
( |
( |
|
|
Receipt/(repayment) of other borrowing |
|
|
|
|
Payments to finance lease creditors |
( |
( |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net decrease in cash and cash equivalents |
( |
( |
|
|
Cash and cash equivalents at 1 July |
|
|
|
|
Cash and cash equivalents at 30 April |
2,286,850 |
2,409,276 |
|
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
|
General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is given in the company information on page 1 of these financial statements.
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies House Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are presented in Sterling (£) and rounded to the nearest £1.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 April 2021.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Disclosure of long or short period
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
Going concern
The directors, in their consideration of going concern, have reviewed the Group's future cash forecasts and revenue projections, which they believe are based on prudent market data and past experience. The directors are of the opinion that the Group's forecasts and projections, which reflect the current economic outlook and take account of reasonable possible changes in trading performance and continued good relationships with the mobile network operators, show that the company should be able to operate within its current facilities.
Based on the above the directors have a reasonable expectation that the Group has adequate resources to continue in operation for the foreseeable future and consequently the directors continue to adopt the going concern basis in the preparation of the financial statements.
Key sources of estimation uncertainty and judgements
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 considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised in the period in which the estimate is revised, if the revision only affects that period, or in the period of revision and future period if the revision affects both the current and future periods.
The estimates and assumptions which have risk of causing material adjustments to the carrying amount of assets and liabilities are set out below:
- Recoverable amount of non-current assets:
All non-current assets, including goodwill and other intangible assets are reviewed for potential impairment using estimates of the future economic benefits attributable to them. Any estimates of future economic benefits made in relation to non-current assets may differ from the benefits that ultimately arise, and materially affect the recoverable value of assets.
- Trade and other receivables:
Provisions for irrecoverable receivables are based on extensive historical evidence and the best available information in relation to specific issues, but are nevertheless inherently uncertain.
- Sales commission claims:
The group is in negotiations with several of its key customers in respect of underpaid commissions spanning a period which includes current and prior years. The group has a number of claims being reviewed by its customer and a number of further claims to make. Assumptions and estimates are therefore required in relation to the outcome of these claims and recoverability. Such assumptions and estimates are based on knowledge gained from historical outcomes of completed claims and the directors assessment of likely outcomes following negotiations with the customer.
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
- Recognition of on-going revenue:
Commission receivable with the group depends, for certain transactions, on customer behaviour after the point of sale. Assumptions are therefore required, particularly in relation to levels of customer default within the contract period, expected levels of customer spend and customer behaviour beyond the initial contract period. Such assumptions are based on extensive historical evidence, and provision is made for the risk of potential changes in customer behaviour, but are nonetheless inherently uncertain.
In addition changes to revenue may be made where, for example, more recent information is available and any such changes are reported through the income statement. Note 2 details the Group’s revenue recognition policy.
- Recognition of on-going commission payable:
Commission payable with the group depends, for certain transactions, on customer behaviour after the point of sale. Assumptions are therefore required, particularly in relation to levels of customer default within the contract period, expected levels of customer spend and customer behaviour beyond the initial contract period. Such assumptions are based on extensive historical evidence, and provision is made for the risk of potential changes in customer behaviour, but are nonetheless inherently uncertain. Changes in estimates may be made where, for example, more reliable information is available and any such changes are reported through the income statement.
- Provisions:
Sales related provisions are based on historical patterns of redemption of promotions, product return rates for returns and warranties and penalty rates from network operators. The Company has extensive data in all areas; however if the historical patterns on which the provisions are based change significantly in the future, then the financial statements may be materially impacted.
Revenue recognition
Turnover is stated net of VAT and other sales related taxes.
Turnover comprises of revenue generated from the sale of mobile communication products and services, commission receivable on sales, ongoing revenue and insurance premiums.
Sales, being commission which is contractually committed, and for which there are no ongoing performance criteria, is recognised when the sales to which the commission relates are made net of any provision for promotional offers and network operator performance penalties. Commission includes ongoing revenue (share of customers airtime spend and customer revenue and retentions bonuses) to the extent that it can be reliably measured and there are no ongoing service obligations - see ‘Use of critical accounting estimates and assumptions’ above.
Other ongoing revenue is recognised as it is received over the lives of the relevant customers.
All other revenue is recognised when the relevant goods or services are provided.
Where the time value of money has an impact, an appropriate discount is applied such that revenue is recognised at an amount equal to the present value of the future consideration received. The unwinding of the discount is recognised within finance income.
Government grants
Government grants are recognised in the profit and loss account as income when such grant does not impose specified future performance-related conditions, in accordance with the performance model.
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Freehold buildings |
2% straight line basis |
|
Freehold land |
No depreciation charged |
|
Fixtures, fittings and office equipment |
15% reducing balance basis and 20% / 33% straight line basis |
|
Motor vehicles |
20% reducing balance basis |
|
Website |
33% straight line basis |
Investment property
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill - on consolidation |
5% straight line basis |
|
Goodwill - purchased |
20%, 33% and 50% straight line basis |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Research and development
Research expenditure is written off to the profit and loss account in the year in which it is incurred.
Inventories
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the group has an obligation at the reporting date as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Share based payments
The company has issued equity settled payments to certain employees under a long term incentive plan. The value of the plan is measured at the fair value at the date of the grant. The fair value is then recognised as an employee cost, with a corresponding increase in equity over the vesting period based on the company's estimate of the number of shares that will vest.
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
|
Revenue |
The analysis of the group's revenue for the period from continuing operations is as follows:
|
1 July 2020 to 30 April 2021 |
1 April 2019 to 30 June 2020 |
|
|
Sales |
|
|
|
Commissions received |
|
|
|
Franchise fees |
|
|
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the period is as follows:
|
1 July 2020 to 30 April 2021 |
1 April 2019 to 30 June 2020 |
|
|
Rent receivable |
194,027 |
322,946 |
|
Government grants receivable |
326,902 |
470,056 |
|
|
|
|
Other gains and losses |
The analysis of the group's other gains and losses for the period is as follows:
|
1 April 2019 to 30 June 2021 |
Year ended 31 March 2020 |
|
|
Gain/loss on disposal of property, plant and equipment |
|
( |
|
Gain/loss on disposal of intangible assets |
( |
- |
|
9,447 |
(5,408) |
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
|
Operating profit/(loss) |
Arrived at after charging/(crediting)
|
1 July 2020 to 30 April 2021 |
1 April 2019 to 30 June 2020 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Foreign exchange gains |
( |
- |
|
Rentals - Land and building and other assets |
|
|
|
(Profit)/loss on disposal of property, plant and equipment |
( |
|
|
Exceptional adminstrative expenses |
|
1 July 2020 to 30 April 2021 |
1 April 2019 to 30 June 2020 |
|
|
Exceptional administrative expenses |
- |
107,170 |
Exceptional administrative expenses relates to the accelerated rent expenses to surrender leases early and the associated legal expenses. These costs were incurred as part of the groups review of its retail outlets.
|
Government grants |
The amount of grants recognised in the financial statements was £326,902 (2020 - £
|
Other interest receivable and similar income |
|
1 July 2020 to 30 April 2021 |
1 April 2019 to 30 June 2020 |
|
|
Interest income on bank deposits |
|
|
|
Other interest receivable |
|
|
|
Other finance income |
|
|
|
|
|
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
|
Interest payable and similar expenses |
|
1 July 2020 to 30 April 2021 |
1 April 2019 to 30 June 2020 |
|
|
Bank loan interest payable |
2,566 |
12,787 |
|
Invoice discount interest |
28,795 |
42,995 |
|
Interest on obligations under finance leases and hire purchase contracts |
1,403 |
|
|
Other loan interest |
- |
60,294 |
|
Other interest payable |
13,113 |
5,157 |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
1 April 2019 to 30 June 2021 |
Year ended 31 March 2020 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Redundancy costs |
- |
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the period, analysed by category was as follows:
|
1 July 2020 to 30 April 2021 |
1 April 2019 to 30 June 2020 |
|
|
Directors |
|
|
|
Management, administration and support |
|
|
|
Sales, marketing and distribution |
|
|
|
Other departments |
|
|
|
|
|
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
During the 2014 year the company introduced an EMI scheme which aims to provide long term incentives to certain employees. The scheme comprises share options which vest upon the listing or trade sale of the company. The company has issued options of 3,868 shares and the can be exercised by the employees at a cost of £275 if exercised before 31 December 2015 and £760 if after 31 December 2015. As at the year end none of the options have been exercised.
|
Directors' remuneration |
The directors' remuneration for the period was as follows:
|
1 April 2019 to 30 June 2021 |
Year ended 31 March 2020 |
|
|
Remuneration |
|
|
During the period the number of directors who were receiving benefits and share incentives was as follows:
|
1 April 2019 to 30 June 2021 |
Year ended 31 March 2020 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
|
Auditors' remuneration |
|
1 July 2020 to 30 April 2021 |
1 April 2019 to 30 June 2020 |
|
|
Audit of these financial statements |
49,500 |
48,000 |
|
The audit of the company's subsidiaries' annual accounts |
12,000 |
21,250 |
|
|
|
|
|
Other fees to auditors |
||
|
Taxation compliance services |
|
|
|
Other services |
|
|
|
|
|
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
|
Taxation |
Tax charged/(credited) in the income statement
|
1 April 2019 to 30 June 2021 |
Year ended 31 March 2020 |
|
|
Current taxation |
||
|
UK corporation tax |
|
- |
|
UK corporation tax adjustment to prior periods |
|
( |
|
51,474 |
(60,816) |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
( |
|
Arising from changes in tax rates and laws |
|
|
|
Total deferred taxation |
|
( |
|
Tax expense/(receipt) in the income statement |
|
( |
The tax on profit before tax for the period is the same as the standard rate of corporation tax in the UK (2020 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2021 |
2020 |
|
|
Profit/(loss) before tax |
|
( |
|
Corporation tax at standard rate |
|
( |
|
Effect of revenues exempt from taxation |
( |
|
|
Effect of tax losses |
- |
|
|
Deferred tax expense relating to changes in tax rates or laws |
|
|
|
Decrease from effect of tax incentives |
( |
( |
|
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
|
Increase/(decrease) in UK and foreign current tax from unrecognised temporary difference from a prior period |
|
( |
|
Deferred tax expense/(credit) from unrecognised temporary difference from a prior period |
|
( |
|
Total tax charge/(credit) |
|
( |
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
Deferred tax
Group
Deferred tax assets and liabilities
|
2021 |
Liability |
|
Accelerated capital allowances |
|
|
2020 |
Liability |
|
Accelerated capital allowances |
|
The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £
Company
Deferred tax assets and liabilities
|
2021 |
Liability |
|
Accelerated capital allowances |
|
|
2020 |
Liability |
|
Accelerated capital allowances |
|
The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
|
Intangible assets |
Group
|
Goodwill |
Other intangibles |
Total |
|
|
Cost or valuation |
|||
|
At 1 July 2020 |
|
|
|
|
Disposals |
( |
( |
( |
|
At 30 April 2021 |
|
|
|
|
Amortisation |
|||
|
At 1 July 2020 |
|
- |
|
|
Amortisation charge |
|
- |
|
|
Amortisation eliminated on disposals |
( |
- |
( |
|
At 30 April 2021 |
|
- |
|
|
Carrying amount |
|||
|
At 30 April 2021 |
|
|
|
|
At 30 June 2020 |
|
|
|
The aggregate amount of research and development expenditure recognised as an expense during the period is £
Company
|
Other intangibles |
Total |
|
|
Cost or valuation |
||
|
At 1 July 2020 |
|
|
|
At 30 April 2021 |
|
|
|
Amortisation |
||
|
Carrying amount |
||
|
At 30 April 2021 |
|
|
|
At 30 June 2020 |
|
|
The aggregate amount of research and development expenditure recognised as an expense during the period is £
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
|
Tangible assets |
Group
|
Freehold land and buildings |
Fixtures, fittings and office equipment |
Motor vehicles |
Website |
Total |
|
|
Cost or valuation |
|||||
|
At 1 July 2020 |
|
|
|
|
|
|
Additions |
- |
|
|
- |
|
|
Disposals |
( |
( |
( |
- |
( |
|
At 30 April 2021 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 July 2020 |
|
|
|
|
|
|
Charge for the period |
|
|
|
|
|
|
Eliminated on disposal |
( |
( |
( |
- |
( |
|
At 30 April 2021 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 30 April 2021 |
|
|
|
|
|
|
At 30 June 2020 |
|
|
|
|
|
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
30 April |
30 June |
|
|
Motor vehicles |
96,626 |
72,985 |
Restriction on title and pledged as security
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
Company
|
Freehold land and buildings |
Fixtures, fittings and office equipment |
Motor vehicles |
Website |
Total |
|
|
Cost or valuation |
|||||
|
At 1 July 2020 |
|
|
|
|
|
|
Additions |
- |
|
|
- |
|
|
Disposals |
( |
( |
( |
- |
( |
|
At 30 April 2021 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 July 2020 |
|
|
|
|
|
|
Charge for the period |
|
|
|
|
|
|
Eliminated on disposal |
( |
( |
( |
- |
( |
|
At 30 April 2021 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 30 April 2021 |
|
|
|
|
|
|
At 30 June 2020 |
|
|
|
|
|
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
30 April |
30 June |
|
|
Motor vehicles |
96,626 |
72,985 |
Restriction on title and pledged as security
|
Investment properties |
Group
|
30 April |
|
|
At 1 July 2020 |
|
|
Additions |
|
|
At 30 April 2021 |
|
The fair value of the investment properties were reviewed by the directors at 30 April 2021. The fair values have been determined by carrying out a review of the properties and are further supported by independent valuations carried out in April 2018 and April 2021 in accordance with RICS. The valuers are registered in accordance with the RICS Value Registration Scheme.
Company
|
30 April |
|
|
At 1 July 2020 |
|
|
Additions |
|
|
At 30 April 2021 |
|
The fair value of the investment properties were reviewed by the directors at 30 April 2021. The fair values have been determined by carrying out a review of the properties and are further supported by independent valuations carried out in April 2018 and April 2021 in accordance with RICS. The valuers are registered in accordance with the RICS Value Registration Scheme.
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
|
Investments |
Company
|
30 April |
30 June |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 July 2020 |
|
|
Provision |
|
|
At 1 July 2020 |
|
|
Carrying amount |
|
|
At 30 April 2021 |
|
|
At 30 June 2020 |
|
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows (companies marked with an asterisk are subsidiaries of one of the other subsidiaries):
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2021 |
2020 |
|||
|
Subsidiary undertakings |
||||
|
|
5 Prospect Place
|
Ordinary |
|
|
|
|
5 Prospect Place
|
Ordinary |
|
|
|
|
Contract House
|
Ordinary |
|
|
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
|
7 Treadaway Tech Centre
|
Ordinary |
|
|
|
Subsidiary undertakings |
|
Buymobilephones.net Limited The principal activity of Buymobilephones.net Limited is |
|
E Shop (Midlands) Limited The principal activity of E Shop (Midlands) Limited is |
|
A1 Comms Retail Solutions Limited The principal activity of A1 Comms Retail Solutions Limited is |
|
Go Mobile Retail Limited* The principal activity of Go Mobile Retail Limited* is |
|
Stocks |
|
Group |
Company |
|||
|
30 April |
30 June |
30 April |
30 June |
|
|
Other inventories |
|
|
|
|
Group
The amount of impairment loss included against stock is £783,673 (2020 - £465,868).
The carrying amount of stocks pledged as security for liabilities amounted to £
Company
The amount of impairment loss included against stock is £680,254 (2020 - £444,218).
The carrying amount of stocks pledged as security for liabilities amounted to £
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
|
Debtors |
|
Group |
Company |
||||
|
Note |
30 April 2021 |
30 June 2020 |
30 April 2021 |
30 June 2020 |
|
|
Trade debtors |
|
|
|
|
|
|
Amounts owed by group undertakings |
- |
- |
|
|
|
|
Other debtors |
|
|
|
|
|
|
Prepayments |
|
|
|
|
|
|
33,768,390 |
25,900,269 |
33,711,954 |
26,062,896 |
||
|
Less non-current portion |
( |
( |
( |
( |
|
|
Total current trade and other debtors |
|
|
|
|
|
Details of non-current trade and other debtors
Group
£10,404,716 (2020 - £6,789,650) of trade debtors is classified as non current.
Company
£10,404,716 (2020 - £6,789,650) of trade debtors is classified as non current.
|
Creditors |
|
Group |
Company |
||||
|
Note |
30 April 2021 |
30 June 2020 |
30 April 2021 |
30 June 2020 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Trade creditors |
|
|
|
|
|
|
Amounts due to group undertakings |
- |
- |
- |
|
|
|
Social security and other taxes |
|
|
|
|
|
|
Other creditors |
|
|
|
|
|
|
Accrued expenses |
|
|
|
|
|
|
Corporation tax liability |
323,638 |
268,574 |
371,794 |
319,721 |
|
|
|
|
|
|
||
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
|
Group |
Company |
||||
|
Note |
30 April 2021 |
30 June 2020 |
30 April 2021 |
30 June 2020 |
|
|
Due after one year |
|||||
|
Loans and borrowings |
|
- |
|
- |
|
|
Social security and other taxes |
- |
|
- |
|
|
|
Trade creditors |
|
|
|
|
|
|
606,099 |
4,827,566 |
606,099 |
5,100,108 |
||
|
Deferred tax and other provisions |
Group
|
Deferred tax |
Other provisions |
Total |
|
|
At 1 July 2020 |
|
|
|
|
Increase (decrease) in existing provisions |
|
|
|
|
At 30 April 2021 |
|
|
|
The other provision relates to sales related provision for the anticipated cost of sales promotions incurred by the group in respect of income generated. The provision has been estimated based on a combination of post year end information and use of past experience and statistical information of take up rates. This is expected to be paid over the next 24 months.
Company
|
Deferred tax |
Other provisions |
Total |
|
|
At 1 July 2020 |
|
|
|
|
Increase (decrease) in existing provisions |
|
|
|
|
At 30 April 2021 |
|
|
|
The other provision relates to sales related provision for the anticipated cost of sales promotions incurred by the group in respect of income generated. The provision has been estimated based on a combination of post year end information and use of past experience and statistical information of take up rates. This is expected to be paid over the next 24 months.
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
30 April 2021 |
30 June 2020 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
810 |
|
810 |
|
|
|
90 |
|
90 |
|
|
|
90 |
|
90 |
|
|
|
10 |
|
10 |
|
|
|
|
|
|
Rights, preferences and restrictions
|
Ordinary and A Ordinary shares have the following rights, preferences and restrictions: |
|
Reserves |
Group
Profit and loss account
The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.
Company
Profit and loss account
The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
|
Loans and borrowings |
|
Group |
Company |
|||
|
30 April |
30 June |
30 April |
30 June |
|
|
Non-current loans and borrowings |
||||
|
Finance lease liabilities and hire purchase contracts |
|
- |
|
- |
|
Group |
Company |
|||
|
30 April |
30 June |
30 April |
30 June |
|
|
Current loans and borrowings |
||||
|
Bank borrowings |
- |
|
- |
|
|
Finance lease liabilities and hire purchase contracts |
|
|
|
|
|
Other borrowings |
|
- |
|
- |
|
|
|
|
|
|
Group
Finance lease liabilities and hire purchase contracts with a carrying amount of £73,526 (2020 - £86,929) is denominated in sterling.
The finance lease liabilities and hire purchase contracts are secured against the related asset.
Other borrowings with a carrying amount of £2,162,246 (2020 - £Nil) is denominated in sterling.
The other borrowings are secured against all assets of the of the company.
Company
Finance lease liabilities and hire purchase contracts with a carrying amount of £73,826 (2020 - £86,929) is denominated in sterling.
The finance lease liabilities and hire purchase contracts are secured against the related asset.
Other borrowings with a carrying amount of £2,162,246 (2020 - £Nil) is denominated in sterling.
The other borrowings are secured against all assets of the of the company.
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
|
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
|
30 April |
30 June |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
- |
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
30 April |
30 June |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the period was £
Operating leases - lessor
The total of future minimum lease payments is as follows:
|
30 April |
30 June |
|
|
Not later than one year |
- |
|
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
Company
Finance leases
The total of future minimum lease payments is as follows:
|
30 April |
30 June |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
- |
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
30 April |
30 June |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
- |
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the period was £
|
Contingent liabilities |
Company
A1 Comms Limited has provided a financial guarantee in respect of it's subsidiary, A1 Comms Retail Limited's operating lease commitments. As at the year end the value of these commitments were £nil (2020 - £23,875).
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
|
Analysis of changes in net debt |
Group
|
At 1 July 2020 |
Financing cash flows |
New finance leases |
At 30 April 2021 |
|
|
Cash and cash equivalents |
||||
|
Cash |
2,409,276 |
(122,426) |
- |
2,286,850 |
|
Borrowings |
||||
|
Hire purchase leases within one year |
(86,929) |
88,322 |
(18,626) |
(17,233) |
|
Hire purchase leases over one year |
- |
- |
(56,293) |
(56,293) |
|
Short term borrowings |
(269,090) |
(1,893,156) |
- |
(2,162,246) |
|
(356,019) |
(1,804,834) |
(74,919) |
(2,235,772) |
|
|
|
( |
( |
|
|
Company
|
At 1 July 2020 |
Financing cash flows |
New finance leases |
At 30 April 2021 |
|
|
Cash and cash equivalents |
||||
|
Cash |
2,375,396 |
(103,601) |
- |
2,271,795 |
|
Borrowings |
||||
|
Hire purchase leases within one year |
(86,929) |
88,322 |
(18,626) |
(17,233) |
|
Hire purchase leases over one year |
- |
- |
(56,293) |
(56,293) |
|
Short term borrowings |
(269,090) |
(1,893,156) |
- |
(2,162,246) |
|
(356,019) |
(1,804,834) |
(74,919) |
(2,235,772) |
|
|
|
( |
( |
|
|
A1 Comms Limited
Notes to the Financial Statements for the Period from 1 July 2020 to 30 April 2021
|
Related party transactions |
Group
Key management compensation
|
30 April |
30 June |
|
|
Salaries and other short term employee benefits |
|
|
|
Transactions with directors |
|
2021 |
At 1 July 2020 |
Advances to directors |
Repayments by director |
At 30 April 2021 |
|
Interest free loan repayable on demand |
(1,323,072) |
( |
|
( |
|
2020 |
At 1 April 2019 |
Advances to directors |
Repayments by director |
At 30 June 2020 |
|
Interest free loan repayable on demand |
( |
( |
|
( |
|
Summary of transactions with directors |
Summary of transactions with other related parties
During the year the company paid commission totalling £2,503,428 (2020 - £947,947), received commission totalling £5,619 (2020 - £188,096), sold stock totalling £1,205,313 (2020 - £172,000) and received management charges of £10,459 (2020 - £29,493). At the balance sheet date the amount due to this related party was £400,119 (2020 - £211,052).
A pension scheme in which the directors are trustees
During the year the company paid commissions totalling £16,250 (2020 - £19,500), paid rent of £Nil (2020 - £26,625) and sold an asset totalling £443,615. At the balance sheet date the amount due to this related party was £nil (2020 - £nil).
|
Parent and ultimate parent undertaking |
The ultimate controlling party is