YPO_PROCUREMENT_HOLDINGS_ - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

YPO Procurement Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is 41 Industrial Park, Wakefield, West Yorkshire, WF2 0XE.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

The financial statements have been prepared on a going concern basis. true

At 31 December 2022 the Company has both net current liabilities (£115,662) and net liabilities (£1,196,189). Despite this, the Company has the strong support of providers of funds in working towards meeting its financial objectives. Specifically, the Company has received support from a key third party creditor detailing that liabilities will not be recalled until the Company has adequate resources to do so.

Accordingly, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt a going concern basis of accounting in preparing the annual financial statements.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In assessing whether there has been any indicators of impairment the Directors have considered both internal sources of information such as market conditions, counterparty credit ratings and trading, experience of recoverability and where applicable, the ability of the asset to be operated as planned.

During the year there have been impairment charges in respect of debtors (£117,446) and fixed asset investments (£38,917) as detailed further in note 4.

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

Loan balances provided to an associate company have been impaired at the reporting date, as the carrying amount of the loan was deemed to exceed the recoverable amount. The recoverable amount and associated impairment has been calculated based on the adjusted net liability position of the associate company at the reporting date. The carrying value of the loan at the reporting date was £214,169 following an impairment charge of £117,446.

The investment balance reported in respect of the same associate company has been fully impaired. The amount of impairment expensed in the year was £38,917.

Other creditors due after more than one year is for a loan received from Yorkshire Purchasing Organisation of £500,000 to help fund investments. A loan agreement has been drawn up and the full capital amount, along with any interest accrued, is payable by 31 December 2030. Due to the long term nature of the loan and repayment dates, all interest accrued to 31 December 2022 is also classed as falling due after more than one year.

Amounts owed to group undertakings reflects invoices paid by group undertakings on behalf of the company. A loan agreement exists between the companies acknowledging that this balance is not due for repayment until sufficient cash flows are available to the company.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

During the year the company entered into the following transactions with related parties:

A related entity under common control made payments on behalf of the company for an amount of £241,199 which is considered as an interest free loan and included in current liabilities (2021: £nil).

Interest payable on a long term loan was charged in the accounts for an amount of £22,374 (2021: £25,529). The loan balance of £593,855 (2021: £571,475) is included in long term liabilities.

The company has provided a loan to an entity under significant influence amounting to £214,169 which is included in current assets (2021: £52,776). The company recognised interest receivable on these loans amounting to £2,843 (2021: £2,776). The company recognised an impairment charge in respect of these loans as well as a related investment balance. The amounts impaired during the year were £117,446 (2021: £nil) and £38,917 (2021: £16,463) respectively.