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Company registration number: 11603798
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FOR THE YEAR ENDED
31 DECEMBER 2021
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ARCHITECTURAL PANEL SOLUTIONS LIMITED
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ARCHITECTURAL PANEL SOLUTIONS LIMITED
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COMPANY INFORMATION
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A E Gray (appointed 29 April 2021)
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A B Symmonds (appointed 29 April 2021)
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Chartered Accountants & Statutory Auditor
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ARCHITECTURAL PANEL SOLUTIONS LIMITED
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CONTENTS
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Statement of financial position
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Notes to the financial statements
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ARCHITECTURAL PANEL SOLUTIONS LIMITED
REGISTERED NUMBER:11603798
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Net current assets/(liabilities)
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Alloted, called up and fully paid share capital
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ARCHITECTURAL PANEL SOLUTIONS LIMITED
REGISTERED NUMBER:11603798
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STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2021
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 3 to 11 form part of these financial statements.
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ARCHITECTURAL PANEL SOLUTIONS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Architectural Panel Solutions Limited is a private company limited by shares incorporated in England and Wales. The address of the registered office is disclosed on the company information page.
The financial statements are presented in £ and are rounded to the nearest pound.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The emergence and spread of COVID-19 in 2020 and 2021, the associated social distancing measures and imposed travel restrictions have significantly impacted businesses globally. As a result of the pandemic, the Directors have worked to ensure the safety of the Company’s employees, to maintain the continuity of operations (whilst adhering to Government advice) and to minimise costs wherever possible (including making use of the various Government reliefs offered, e.g. placing staff on furlough where necessary).
The Company made a loss before tax of £620,043 (2020: £1,283,475) for the year ended 31 December 2021. At the balance sheet date, the Company reported net current assets of £363,570 (2020: net current liabilities of £277,642) and net liabilities of £1,986,695 (2020: £1,471,427). The losses at the year end are in line with the forecasts and expectations of the Directors.
At the end of 2021 and beginning of 2022, there were delays in completing sales orders as a result of some maintenance required to key plant and machinery. This unexpected outage had a detrimental impact on the cash position of the Company and by the end of 2022 it was necessary for the Company to seek additional funding from their investors. The restructure was completed in March 2023 through a further cash injection of £250,000, together with the introduction of an invoice discounting facility. The key creditors of the Company have also shown their willingness to continue to support the company, to include a payment plan having been fully agreed with HMRC and a deferral of three quarters' loan payments.
The Company holds loan notes on its balance sheet at 31 December 2021 of £2.35m plus interest of £1.02m and the directors have received assurance from the loan note holders that they intend to reschedule the repayment from their current redemption date of 31 March 2024 to an expected period of a further 3 years.
In addition, the investment in R&D has proved very successful for the Company, and with a new recipe, they have been able to maximise sales opportunities which have already started to show significant positive signs through an increase in sales. Consequently, the business is now in a positive position to move forward.
Taking the above into consideration and reviewing forecasts to 31 December 2023, the Directors have gained comfort that the going concern basis of preparation of the financial statements continues to be appropriate.
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ARCHITECTURAL PANEL SOLUTIONS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of income and retained earnings except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of income and retained earnings within 'other operating income'.
Revenue from the sale of rainscreen cladding and fixing systems is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, which is usually when the goods are despatched to the customer and the significant risks and rewards of ownership have transferred. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Grants are accounted under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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ARCHITECTURAL PANEL SOLUTIONS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
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 Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
As at 31 December 2021, the Company had unutilised tax losses totalling £275,455 (2020: £164,447). No deferred tax asset has been provided in connection with these losses.
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ARCHITECTURAL PANEL SOLUTIONS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of income and retained earnings over its useful economic life, which is considered to be 10 years as this is the directors' best estimate of the period over which the products and knowledge acquired on transfer of trade and assets will continue to generate value for the business.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Testing and accreditations represent the capitalised cost of research and development in connection with obtaining relevant fire safety accreditations for the Company's products. Testing and accreditations costs are amortised over a period of 10 years, which represents the directors' best estimate of the period for which the current regulations will remain in place and therefore the period over which the accreditations will continue to generate future cash inflows to the business.
Computer software assets represent the capitalises costs incurred by the Company in implementing its finance and CRM systems. Computer software is amortised over a period of 5 years as this is the directors' best estimate of the period for which the software will be utilised before a replacement or upgrade is required.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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Testing and accreditations
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Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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ARCHITECTURAL PANEL SOLUTIONS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance method.
Depreciation is provided on the following basis:
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Long-term leasehold property
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Straight line over the lease term
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is 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.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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The average monthly number of employees, including directors, during the year was 37 (2020 - 27).
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ARCHITECTURAL PANEL SOLUTIONS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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ARCHITECTURAL PANEL SOLUTIONS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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Long-term leasehold property
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Charge for the year on owned assets
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ARCHITECTURAL PANEL SOLUTIONS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Other loans are secured by means of a fixed and floating charge over all property or undertaking of the Company.
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Creditors: Amounts falling due after more than one year
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Other loans are secured by means of a fixed and floating charge over all property or undertaking of the Company.
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ARCHITECTURAL PANEL SOLUTIONS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Commitments under operating leases
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At 31 December 2021 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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The auditors' report on the financial statements for the year ended 31 December 2021 was unqualified.
The audit report was signed on 17 March 2023 by Caroline Milton FCA (Senior statutory auditor) on behalf of Menzies LLP.
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