Avatu Limited - Filleted accounts

AVATU LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 MARCH 2023

Company Registration Number: 02762085

AVATU LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
CONTENTS									PAGES
Company information									1
Balance sheet									2 to 3
Notes to the financial statements									4 to 11

AVATU LIMITED
COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2023
DIRECTOR
H S Jouhal
SECRETARY
The company does not have an appointed secretary
REGISTERED OFFICE
Unit E2 Regent Park
Summerleys Road
Princes Risborough
Buckinghamshire
HP27 9LE
COMPANY REGISTRATION NUMBER
02762085 England and Wales

AVATU LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
			Notes		2023				2022
					£				£
FIXED ASSETS
Tangible assets			5				16,810				23,136
Investments			6				1				1
							16,811				23,137
CURRENT ASSETS
Stock					85,887				135,958
Debtors			7		2,229,216				2,227,731
Cash at bank and in hand					31,669				36,761
					2,346,772				2,400,450
CREDITORS: Amounts falling due within one year			8		1,467,327				1,445,971
NET CURRENT ASSETS							879,445				954,479
TOTAL ASSETS LESS CURRENT LIABILITIES							896,256				977,616
CREDITORS: Amounts falling due after more than one year			9				128,042				161,258
Provisions for liabilities and charges							1,526				2,136
NET ASSETS							766,688				814,222
CAPITAL AND RESERVES
Called up share capital							100				100
Distributable profit and loss account							766,588				814,122
SHAREHOLDER'S FUNDS							766,688				814,222

AVATU LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
These accounts have been prepared and delivered in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and in accordance with the provisions of FRS 102 Section 1A - small entities.
For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
Members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
As permitted by S444 (5A) of the Companies Act 2006 the directors have not delivered to the Registrar a copy of the company’s Profit and Loss Account or Directors Report.
Signed on behalf of the board
H S Jouhal
Director
Date approved by the board: 18 December 2023

AVATU LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
1	GENERAL INFORMATION
	Avatu Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is:
	Unit E2 Regent Park
	Summerleys Road
	Princes Risborough
	Buckinghamshire
	HP27 9LE
	The financial statements are presented in Sterling, which is the functional currency of the company.
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Basis of preparation of financial statements
	These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 Section 1A smaller entities 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ('FRS 102') and the Companies Act 2006.
	Going concern

	The accounts have been drawn up on the going concern basis. The company owes Praetura £310,262 (2022 - £407,780), Kingsway £124,802 (2022 - £148,178), Seneca £130,000 (2022- £nil), Maxcap £51,600 (2022 - £32,125), its bank £40,282 (2022 - £45,839) and the director £283,896 (2022 - £232,724), all of which (excluding the Kingsway loan) could be required for repayment without notice. The company is therefore dependent upon the continued support of its funders and the director. The director does not consider their own support nor the support of its funders likely to be withdrawn.
	If the going concern basis was not appropriate, adjustments would have to be made to reduce the value of assets to their recoverable amounts, to provide for additional liabilities that might arise and to reclassify fixed assets as current assets.

	Revenue recognition

	Turnover is measured at the fair value of consideration received or receivable and represents the sale of disk duplication services, software and hardware, stated net of trade discounts and value added tax.
	The company recognises revenue when the amount of revenue can be measured reliably and when it is probable that future economic benefits will flow to the entity.

	Grant Income
	Grant income has been recognised under the accrual model, where income is recognised on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.

AVATU LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Tangible fixed assets

	Fixed assets are carried at cost less accumulated depreciation and accumulated impairment losses.

	Depreciation has been provided at the following rate so as to write off the cost or valuation of assets less residual value of the assets over their estimated useful lives.
	Plant and equipment					Reducing balance basis at 20% per annum
	Office and computer equipment, website, software and fixtures and fittings					Straight line basis at 20% and reducing balance basis at 20% per annum
	Leasehold improvements					Straight line basis at 10% per annum
	On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in the profit and loss account, and included within administrative expenses.
	Investments

	The investment in the subsidiary is shown at cost less accumulated impairment losses.

	Financial Instruments
	The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
	Financial assets are measured at cost and are assessed at the end of each reporting period for objective evidence of impairment. Where objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

The impairment loss for financial assets measured at cost is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

	Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amount and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

AVATU LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Impairment of non-financial assets

	At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets (which is the higher of value in use and the fair value less cost to sell) is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in the profit and loss account.
	Stocks are assessed for impairment at each reporting date. The carrying amount of each item of stock, or group of similar items, is compared with its selling price less cost to complete and sell. If an item of stock, or group of similar items, is impaired its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in the profit and loss account.
	If an impairment loss is subsequently reversed, the carrying amount of the asset, or group of related assets, is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset, or group of related assets, in prior periods. A reversal of an impairment loss is recognised immediately in the profit and loss account.

	Stock

	Stock has been valued at the lower of cost and estimated selling price less cost to complete and sell, after making due allowance for obsolete and slow-moving items. Cost comprises the cost of goods purchased valued on a first in first out basis.
	The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.

	Debtors

	Short term debtors are measured at transaction price, less any impairment.
	Loans receivable are measured initially at fair value, net of transaction costs, and subsequently at amortised cost, less any impairment.

	Creditors
	Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and subsequently at amortised cost.

AVATU LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Leases
	Leases are classified as finance leases when they transfer substantially all the risks and rewards of ownership of the leased assets to the company. Other leases that do not transfer substantially all the risks and rewards of ownership of the leased assets to the company are classified as operating leases.
	Payments applicable to operating leases are charged against profit on a straight line basis over the lease term.
	Taxation
	Taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period.
	A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods based on current tax rates and laws. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period.

	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other taxable profits.
	Deferred tax is measured using 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.

	Current and deferred tax assets and liabilities are not discounted.
	Foreign currencies

	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction.
	Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rate of exchange prevailing at that date. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit or loss.

	Borrowing costs
	All borrowing costs are recognised in the profit and loss account in the period in which they are incurred.
	Provisions
	A provision for annual leave accrued by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use is recognised. The provision is measured at the salary cost payable for the period of absence.

AVATU LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Pensions
	The company operates a defined contribution pension scheme. The amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the amount payable in the year. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments in the balance sheet.
	Employee benefits

	Short term employee benefits are recognised as an expense in the period in which they are incurred.

	Consolidation
	The company is a parent company subject to the small companies regime. The company and its subsidiary comprise a small group. The company has therefore taken advantage of the option provided by section 399 of the Companies Act 2006 not to prepare group accounts.
3	CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

	No significant accounting estimates and judgements have had to be made by the director in preparing these financial statements.

4	EMPLOYEES
	The average number of persons employed by the company (including the director) during the year was:
									2023		2022
	Average number of employees								4		5

AVATU LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
5	TANGIBLE ASSETS
					Plant and equipment		Office and computer equipment, website, software and fixtures and fittings		Leasehold improvements		Total
					£		£		£		£
	Cost
	At 1 April 2022				13,601		124,459		4,474		142,534
	Additions				-		2,994		-		2,994
	At 31 March 2023				13,601		127,453		4,474		145,528
	Accumulated depreciation and impairments
	At 1 April 2022				13,455		103,260		2,683		119,398
	Charge for year				29		8,844		447		9,320
	At 31 March 2023				13,484		112,104		3,130		128,718
	Net book value
	At 1 April 2022				146		21,199		1,791		23,136
	At 31 March 2023				117		15,349		1,344		16,810
6	FIXED ASSET INVESTMENTS
											Investment in subsidiary
											£
	Cost
	At 1 April 2022										1
	At 31 March 2023										1
	Net book value
	At 1 April 2022										1
	At 31 March 2023										1

AVATU LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
7	DEBTORS
									2023		2022
									£		£
	Trade debtors								408,573		445,752
	Prepayments and accrued income								179,272		135,957
	Other debtors								1,641,371		1,646,022
									2,229,216		2,227,731
8	CREDITORS: Amounts falling due within one year
									2023		2022
									£		£
	Bank loans and overdrafts								528,904		472,659
	Trade creditors								442,148		541,041
	Taxation and social security								128,716		194,081
	Accruals and deferred income								75,770		5,359
	Other creditors								291,789		232,831
									1,467,327		1,445,971
9	CREDITORS: Amounts falling due after more than one year
									2023		2022
									£		£
	Bank loans and overdrafts								128,042		161,258
10	SECURED DEBTS
	The company has a Confidential Invoice Discounting facility in place with Praetura Invoice Finance Limited. Praetura Invoice Finance Limited holds a fixed and floating charge over the assets of Avatu Limited and its holding company, Data Duplication (Holdings) Limited.
	The secured debts of the company are also supported by a personal guarantee by H S Jouhal of £50,000, which is split equally between the Confidential Invoice Discounting facility and the Enterprise Finance Guarantee loan.
	The company has a Loan Facility with Seneca Trade Finance LTD. Seneca Trade Finance LTD holds holds a fixed and floating charge over the assets of Avatu Limited and its holding company, Data Duplication (Holdings) Limited.

AVATU LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
11	CONTINGENCIES AND COMMITMENTS
	Other Commitments
	Amounts falling due under operating leases:								2023		2022
									£		£
	In less than one year								47,500		53,262
	In more than one but less than five years								83,125		130,625
									130,625		183,887
12	RELATED PARTY TRANSACTIONS
	The company has claimed exemptions from reporting disclosure of related party transactions with the following wholly owned group members:
	Data Duplication (Holdings) Limited			-	Parent company
	Data Duplication Limited			-	Subsidiary company
	Detegra Limited			-	Subsidiary company
	Forensic Store Limited			-	Subsidiary company
	During the year, the following transactions with related parties took place:
	H S Jouhal
	Director								2023		2022
									£		£
	H S Jouhal		The director has made advances to the company which are repayable on demand. Interest has been charged on these advances. At the year end, the company owed the director the following amount:						283,896		232,724
13	POST BALANCE SHEET EVENTS
	After the year end, the company secured a loan with Funding Circle of £150,000.