ACCOUNTS - Final Accounts preparation
ACCOUNTS - Final Accounts preparation
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Registered number:
for the year ended
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Esprit Fini Limited
Company Information
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Esprit Fini Limited
Contents
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Esprit Fini Limited
Strategic Report
for the year ended 28 February 2023
The principal activity of the Company during the year continued to be that of a holding company. The Company owns property and during the year earned rental income totalling £86k from its trading subsidiary, Northpoint Limited.
In the year ended 29 February 2020, the Company arranged a new bank loan facility totalling £980k, secured against the property of the Company. During the year, the Company made further loan repayments such that a balance of £777k is carried forward at 28 February 2023. The Company is dependent on the trading activities of the subsidiary, Northpoint Limited.
The Company's trading subsidiary manages risk mainly through acquiring new customers.
We are constantly researching and developing new coating applications in order to best serve our existing and new customers. Each Director takes an active role in this respect. We aim to protect the cashflows generated by payments made by our customers. This is done principally by reviewing up to date financial information applicable to each customer and in the majority of cases ensuring we have full credit insurance cover against the balances owed to Northpoint by them. Over many years we have invested heavily in our Plant and Equipment. We aim to deliver coated material back to our customers on time, and it is therefore very important that we maintain our Plant and Equipment to a very high standard.
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company and the trading subsidiary as a whole, namely, turnover, operating profits and net assets.
The turnover achieved by the company is £86k, being rental income associated with the lease agreement made between the Company and its trading subsidiary, Northpoint Limited. Operating profit is £46k (2022: £46k) after depreciation charges totalling £40k. Turnover achieved by the trading subsidiary, Northpoint Limited, has increased by £61k, from £7.581m to £7.642m. Operating profit has increased by £213k, from £130k to £343k. Profit before taxation has increased by £161k, from £105k to £266k. The net assets of Esprit Fini Limited have increased by £8k from £356k to £364k, and the net assets of Northpoint Ltd have iincreased by £42k, from £1.793m to £1.835m.
The Company and trading subsidiary’s principal financial instruments continue to be invoice discounting, trade creditors, hire purchase and bank loans. The main purpose of these instruments is to raise funds for and to finance the Company and Group’s operations.
The Directors feel that the key financial risk management for the Company and Group is best served by the monthly review of management accounts encompassing the sales reports, cash flow, bank and debtor positions, and stock levels.
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Esprit Fini Limited
Strategic Report (continued)
for the year ended 28 February 2023
This report was approved by the board and signed on its behalf.
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Esprit Fini Limited
Directors' Report
for the year ended 28 February 2023
The directors present their report and the financial statements for the year ended 28 February 2023.
The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to 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.
The profit for the year, after taxation, amounted to £188 thousand (2022 - £420 thousand).
Dividends paid during the year amounted to £180 thousand (2022: £400 thousand).
The directors do not recommend the payment of a final dividend.
The directors who served during the year were:
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Esprit Fini Limited
Directors' Report (continued)
for the year ended 28 February 2023
There have been no significant events affecting the Company since the year end.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Esprit Fini Limited
Independent Auditors' Report to the Members of Esprit Fini Limited
We have audited the financial statements of Esprit Fini Limited (the 'company') for the year ended 28 February 2023, which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 United Kingdom, including the Financial Reporting Council'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.
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.
The other information comprises the information included in the Annual Report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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Esprit Fini Limited
Independent Auditors' Report to the Members of Esprit Fini Limited (continued)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
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Esprit Fini Limited
Independent Auditors' Report to the Members of Esprit Fini Limited (continued)
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 auditors' 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:
Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: • The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets. • The outcome of enquiries of management, including whether management was aware of any instances of non- compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud. • Supporting documentation relating to the Company's policies and procedures for: - Identifying, evaluating, and complying with laws and regulations - Detecting and responding to the risks of fraud • The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. • The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. • The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption. Audit response to risks identified Our procedures to respond to the risks identified included the following: • Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements. • Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud. • Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities. • Enquiring of management about any actual and potential litigation and claims. • Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud. We have also considered the risk of fraud through management override of controls by: • Testing the appropriateness of journal entries and other adjustments. • Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and • Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
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Esprit Fini Limited
Independent Auditors' Report to the Members of Esprit Fini Limited (continued)
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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 auditors' 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 auditors' 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
Chartered Accountants & Statutory Auditors
Lancashire Gate
21 Tiviot Dale
SK1 1TD
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Esprit Fini Limited
Statement of Comprehensive Income
for the year ended 28 February 2023
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Esprit Fini Limited
Registered number: 04082495
Balance Sheet
as at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 12 to 20 form part of these financial statements.
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Esprit Fini Limited
Statement of Changes in Equity
for the year ended 28 February 2023
Statement of Changes in Equity
for the year ended 28 February 2022
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Esprit Fini Limited
Notes to the Financial Statements
for the year ended 28 February 2023
The principal activity of the company is acting as a holding company. The company is dependent on the trading activities of the subsidiary, Northpoint Limited.
Esprit Fini Limited is a private company limited by share capital and incorporated in England. The address of the registered office and principal place of business is Globe Lane, Dukinfield, Cheshire, SK16 4UY. The company's registered number is 04082495.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Northpoint Group Limited as at 28 February 2023 and these financial statements may be obtained from Globe Lane, Dukinfield, Cheshire, SK16 4UY.
Revenue is recognised when the amount of revenue can be measured reliably and it is probable that the company will receive the consideration due under the transaction.
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Esprit Fini Limited
Notes to the Financial Statements
for the year ended 28 February 2023
2.Accounting policies (continued)
Investment property rented to other group entities and accounted for under the cost model is stated at historical cost less accumulated depreciation and any accumulated impairment losses.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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Esprit Fini Limited
Notes to the Financial Statements
for the year ended 28 February 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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.
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Esprit Fini Limited
Notes to the Financial Statements
for the year ended 28 February 2023
2.Accounting policies (continued)
The directors believe that judgements, estimates and assumptions do not have a significant risk of causing a material difference to the carrying amounts of the assets and liabilities within the next financial year.
The whole of the turnover is attributable to the principal activity of the company.
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Esprit Fini Limited
Notes to the Financial Statements
for the year ended 28 February 2023
The main rate of corporation tax has increased to 25% for the tax year commencing 1 April 2023 for companies where profits exceed £250,000. A tapered rate has been introduced for profits above £50,000 up to the £250,000 limit.
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Esprit Fini Limited
Notes to the Financial Statements
for the year ended 28 February 2023
The following is a subsidiary undertaking of the Company:
The registered office of Northpoint Ltd is Globe Lane, Dukinfield, Cheshire, SK16 4UY.
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Esprit Fini Limited
Notes to the Financial Statements
for the year ended 28 February 2023
The bank loan is secured by way of First Legal Mortgage over the freehold property of Esprit Fini Limited known as Globe Lane, Dukinfield, SK16 4UY.
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Esprit Fini Limited
Notes to the Financial Statements
for the year ended 28 February 2023
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Esprit Fini Limited
Notes to the Financial Statements
for the year ended 28 February 2023
Profit and loss account
The company is party to a cross guarantee with HSBC to secure borrowings in respect of other companies in the group. At 28 February 2023, the potential liability was £1,397,000 (2022: £1,387,000).
The Company's parent undertaking is Northpoint Group Limited, company number 06272179, registered in England & Wales. Northpoint Group Limited produces consolidated financial statements and these are available from Companies House.
At 28 February 2023, the ultimate controlling party is the Northpoint Group Employee Ownership Trust.
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