Fileturn Limited - Limited company accounts 23.2
Fileturn Limited - Limited company accounts 23.2
REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST MARCH 2023 |
FOR |
FILETURN LIMITED |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST MARCH 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Statement of Comprehensive Income | 9 |
Statement of Financial Position | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
FILETURN LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST MARCH 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and |
Statutory Auditors |
Russell House |
140 High Street |
Edgware |
Middlesex |
HA8 7LW |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST MARCH 2023 |
The directors present their strategic report for the year ended 31st March 2023. |
REVIEW OF BUSINESS |
Fileturn Limited is the trading company of the group of companies known as Fileturn. |
The Board are pleased to report that the ordinary business remained stable with both Turnover and Gross Profits increasing year on year. |
Unfortunately, this has been negatively affected by the impact of a loss sustained from a one-off exceptional project, which has proved both technically unique and commercially challenging. |
As a result of the above, the company presents a net loss for the year. |
Staff levels have remained substantially unchanged from the previous year. |
Future developments |
The Company continues to work with major brands specialising in rapid expansion and roll out programmes as well as seeking new markets for it's services. At the time of writing, the Company's pipeline consists of projects for a number of national restaurant and hotel brands with both existing and new emerging clients. |
The Board are pleased to report that we are continuing to recruit staff to meet the demands of our pipeline of projects, both secured and in negotiation. |
The directors remain sensitive to the ever-changing economic backdrop and continue to carefully monitor all KPIs, ensuring that the Statement of Financial Position continues to maintain a strong position whilst supporting the medium and long term objectives of the Company. |
Key performance indicators |
The key financial indicators over the last two years are as follows: |
2023 | 2022 |
Turnover - Ordinary | £31m | £24m |
Gross profit margin (%) | 13.26% | 15.50% |
Operating profit | £557k | £464K |
Exceptional item | £(1,576)k | £- |
Average number of office/professional staff | 32 | 33 |
Principal Risks and Uncertainties |
The Company's principal financial instruments comprise bank balances, bank overdrafts, bank loans and trade creditors. The main purpose of these instruments is to raise monies to fund the Company's operations. |
The Company's approach to managing other risks applicable to the financial instruments concerned is as shown below. |
The Company seeks to win profitable work through responding to a good number of opportunities most appropriate to it's experience and resources. Our success depends upon our ability to identify, price and execute the right volume and quality of bids to maintain a profitable, sustainable order book. All bids are subject to rigorous estimating and tendering processes within a controlled framework and the defined delegated authority levels for approving all tenders prior to submission. |
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility. |
Banking facilities to fund contracted work are arranged in a controlled fashion with the company's bankers and ensuring covenants relating thereto are complied with. |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST MARCH 2023 |
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
The Company is also exposed to risk on the pricing of its contracts in terms of competitiveness. The risks are managed by regular pro-active reviews of contracts and margins as well as responding to market forces in a competitive environment. |
The Board continues to invest in training for its staff and a management structure to oversee the delivery and quality control of projects. |
GOING CONCERN |
The company has been negatively affected by the impact of a loss incurred on a one-off exceptional project, which has been both technically unique and commercially challenging. However, the directors are confident that the company is still a going concern as the core trading operations are profitable. The loss on the one off project has been fully recognised in these financial statements and therefore will have no further impact on the company's financial position going forward. |
ON BEHALF OF THE BOARD: |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST MARCH 2023 |
The directors present their report with the financial statements of the company for the year ended 31st March 2023. |
PRINCIPAL ACTIVITY |
The company is an innovative interior fit-out contractor. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 March 2023 was £160,000 (2022: £54,000). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st April 2022 to the date of this report. |
DONATIONS AND EXPENDITURE |
During the year the company made no charitable donations. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | 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 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, The Paris Partnership LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FILETURN LIMITED |
Opinion |
We have audited the financial statements of Fileturn Limited (the 'company') for the year ended 31st March 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity 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 31st March 2023 and of its loss for the year 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 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 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 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FILETURN LIMITED |
Matters on which we are required to report by exception |
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 Report of the Directors. |
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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the 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 four, 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 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 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 company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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. |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company. |
Our approach was as follows: |
- We obtained an understanding of the legal and regulatory requirements applicable to the |
company and considered that the most significant are the Companies Act 2006, UK financial |
reporting standards. as issued by the Financial Reporting Council, and UK taxation legislation. |
- We obtained an understanding of how the company complies with these requirements by |
discussions with management and those charged with governance. |
- We assessed the risk of material misstatement of the financial statements, including the risk of |
material misstatement due to fraud and how it might occur, by holding discussions with |
management and those charged with governance. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FILETURN LIMITED |
- We inquired of management and those charged with governance as to any known instances |
of non-compliance or suspected non-compliance with laws and regulations. |
- Based on this understanding, we designed specific appropriate audit procedures to identify |
instances of non-compliance with laws and regulations. This included making enquiries of |
management and those charged with governance and obtaining additional corroborative |
evidence as required. |
As part of an audit in accordance with ISAs (UK) we exercise professional judgement |
and maintain professional scepticism throughout the audit. We also: |
- Identify and assess the risks of material misstatement of the financial statements, whether |
due to fraud or error,design and perform audit procedures responsive to those risks, and |
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
The risk of not detecting a material misstatement resulting from fraud is higher than for |
one resulting from error, as fraud may involve collusion, forgery, intentional |
omissions,misrepresentations, or the override of internal control. |
- Obtain an understanding of internal control relevant to the audit in order to design audit |
procedures that are appropriate in the circumstances, but not for the purposes of |
expressing an opinion on the effectiveness of the company's internal control. |
- Evaluate the appropriateness of accounting policies used and the reasonableness of |
accounting estimates and related disclosures made by the directors. |
- Conclude on the appropriateness of the directors' use of the going concern basis of |
accounting and, based on the audit evidence obtained, whether a material uncertainty |
exists related to events or conditions that may cast significant doubt on the company's ability |
to continue as a going concern. If we conclude that a material uncertainty exists we are |
required to draw attention in our auditor's report to the related disclosures in the financial |
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions |
are based on the audit evidence obtained up to the date of our auditor's report. However, |
future events or conditions may cause the company to cease to continue as a |
going-concern. |
- Evaluate the overall presentation, structure and content of the financial statements, including |
the disclosures, and whether the financial statements represent the underlying transactions |
and events in a manner that achieves fair presentation. |
We communicate with those charged with governance regarding, among other matters, |
the planned scope and timing of the audit and significant audit findings, including any |
significant deficiencies in internal control that we identify during our audit. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FILETURN 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 a Report of the Auditors 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 and |
Statutory Auditors |
Russell House |
140 High Street |
Edgware |
Middlesex |
HA8 7LW |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31ST MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
556,923 | 349,803 |
Other operating income |
OPERATING PROFIT | 7 |
Exceptional item | 8 | ( |
) |
(1,018,830 | ) | 463,672 |
Interest receivable and similar income |
(998,593 | ) | 463,908 |
Interest payable and similar expenses | 9 | ( |
) | ( |
) |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 10 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
STATEMENT OF FINANCIAL POSITION |
31ST MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
Tangible assets | 14 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 17 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Share premium | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST MARCH 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1st April 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31st March 2022 | 10,000 | 1,108,824 | 4,000 | 1,122,824 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31st March 2023 |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST MARCH 2023 |
1. | STATUTORY INFORMATION |
Fileturn Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The presentational currency of the financial statements is the Pound Sterling (£). |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 33.7. |
The financial statements of the company are consolidated in the financial statements of Fileturn Group Limited. These consolidated financial statements are available from its registered office, Fileturn House, Brighton Road, Redhill, Surrey, England, RH1 6QZ |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Construction contracts |
When the outcome of a construction contract can be estimated reliably and it is probable that the contract will be profitable, turnover and costs are recognised over the period of the contract. |
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. |
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately. |
When the outcome of a construction contract cannot be estimated reliably, contract turnover is recognised only to the extent of contract costs that are recoverable and the contract costs are expensed as incurred. |
The company uses the "percentage of completion method" to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded for contract costs in determining the stage of completion. These costs are presented as amounts recoverable on contracts, provided it is probable they will be recovered. |
Intangible assets other than goodwill |
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. |
Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives. |
Computer software | 33% reducing balance |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. |
Depreciation is recognised so as to write off the costs of assets less their residual values over their useful lives on the following basis: |
Improvements to property | 25% reducing balance |
Fixtures and fittings | 25% reducing balance |
Computer equipment | 33% reducing balance |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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 future taxable profits. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Financial instruments |
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 when the company becomes party to the contractual provisions of the instrument. |
Basic financial assets |
Basic financial assets, which include trade, group and other debtors are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. |
Impairment of financial assets |
Financial assets are assessed for indicators of impairment at each reporting end date. |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occured after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial assets and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Classification of financial liabilities |
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 |
Basic financial liabilities, including trade and other creditors, and amounts owed to fellow group companies, 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. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire. |
Equity instruments |
Equity instruments issued by the company are recorded at the fair value of 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. |
Provisions |
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and that obligation can be estimated reliably. |
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar expenses. |
Government grants |
Government grants are recognised where there is reasonable assurance that the grant will be received. Loans provided and/or guaranteed by government that represent market rates of interest are recorded at the amount of the proceeds received and recognised within Borrowings. Those loans provided and/or guaranteed by government that represent below market rates of interest are measured at inception at their fair value and recognised within Borrowings, with the differential to the proceeds received recorded within Deferred income and released to the relevant financial statement caption in the Income statement on an accruals basis. Grants that compensate the Company for expenses incurred are recognised in the Income statement in the relevant financial statement caption on an accruals basis in the periods in which the expenses are recognised. |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
The Coronavirus Job Retention Scheme (CJRS) |
The CJRS was implemented by the Government of the United Kingdom from March 1, 2020, where those employees designated as being 'furloughed workers' were eligible for up to 80 per cent of their wage costs paid up to a maximum of £2,500 per month. During the year the company received £Nil (2022:£3,226) under the scheme which has been recognised as grant income on an accruals basis. The Company is obliged to continue to pay the associated social security costs and employer pension contributions. |
Coronavirus Business Interruption Loan Scheme (CBILS) |
The company received a CBILS loan of £2.50 million, payable within 6 years, with interest incurred at 4.9% over base rate. Capital repayments were deferred by 12 months and the initial 12 months interest payments made by the Government were recognised as grant income. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
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 that are considered to be relevant, Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Key sources of estimation uncertainty |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Construction contracts |
The company uses the percentage of completion method to determine the appropriate amount of revenue to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded for contract costs in determining the stage of completion. |
4. | TURNOVER |
The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the company. |
An analysis on the company's turnover is as follows: |
2023 | 2022 |
£ | £ |
Turnover analysed by class of business |
Turnover arising from the company's principal activity | 31,279,246 | 24,006,868 |
2023 | 2022 |
£ | £ |
Other revenue |
Interest income | 20,237 | 236 |
Government grants | - | 113,869 |
All of the company's turnover is derived from projects undertaken within the UK |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2023 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 5 | 5 |
Office staff | 25 | 27 |
Professional staff | 2 | 1 |
6. | DIRECTORS' EMOLUMENTS |
2023 | 2022 |
£ | £ |
Directors' remuneration | 548,257 | 489,755 |
Directors' pension contributions to money purchase schemes | 53,744 | 42,653 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 5 | 5 |
Information regarding the highest paid director is as follows: |
2022 | 2021 |
£ | £ |
Emoluments etc | 127,457 | 115,128 |
Pension contributions to money purchase schemes | 3,788 | 3,421 |
7. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Computer software amortisation |
Auditors' remuneration |
8. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Exceptional item | ( |
) |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2023 |
The Company engaged on a one off and non-core project during the year and encountered a series of unique technical and commercial challenges on this project resulting in a substantial delay in its completion. As a consequence, significant exceptional losses have been incurred and recognised in the accounting year to March 2023. |
This project has therefore been treated as an Exceptional item during the year. |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
10. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Over Provision prior years | (58,411 | ) | - |
Tax credits | (30,226 | ) | - |
Total current tax | ( |
) |
Deferred tax | ( |
) | ( |
) |
Tax on (loss)/profit | ( |
) |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Utilisation of tax losses | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Deferred tax | (206,961 | ) | (2,647 | ) |
Tax credits | (30,226 | ) | - |
Total tax (credit)/charge | (295,598 | ) | 55,764 |
11. | DIVIDENDS |
The total distribution of dividends for the year ended 31 March 2023 were £160,000 (2022: £54,000). |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2023 |
12. | CONSTRUCTION CONTRACTS |
2023 | 2022 |
£ | £ |
Contracts in progress at the reporting date |
Gross amounts owed by contract customers included in debtors | 1,391,483 | 1,502,890 |
Gross amounts owed to contract customers included in creditors | (4,517,750 | ) | (1,109,868 | ) |
Contract revenue recognised |
Contract costs incurred plus recognised profit less recognised losses to date | 31,279,246 | 24,006,868 |
13. | INTANGIBLE FIXED ASSETS |
Computer |
software |
£ |
COST |
At 1st April 2022 |
Additions |
At 31st March 2023 |
AMORTISATION |
At 1st April 2022 |
Amortisation for year |
At 31st March 2023 |
NET BOOK VALUE |
At 31st March 2023 |
At 31st March 2022 |
14. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | and | Computer |
property | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1st April 2022 |
and 31st March 2023 |
DEPRECIATION |
At 1st April 2022 |
Charge for year |
At 31st March 2023 |
NET BOOK VALUE |
At 31st March 2023 |
At 31st March 2022 |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2023 |
15. | DEBTORS |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Amount recoverable on contract |
Other debtors |
Tax |
Prepayments |
Amounts falling due after more than one year: |
Deferred tax |
Aggregate amounts |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 18) |
Trade creditors |
Amounts due on contracts | 4,517,750 | 1,109,868 |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 1,430,613 | 1,075,596 |
Other creditors |
Accrued expenses |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 18) |
18. | LOANS AND OVERDRAFTS |
An analysis of the maturity of loans and overdrafts is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2023 |
18. | LOANS AND OVERDRAFTS - continued |
2023 | 2022 |
£ | £ |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
19. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
The lease contains a break clause at 5 years. |
20. | FINANCIAL INSTRUMENTS |
Carrying amount of financial assets |
2023 | 2022 |
£ | £ |
Debt instruments measured at amortised cost | 7,682,383 | 6,899,126 |
Carrying amount of financial liabilities | 2023 | 2022 |
£ | £ |
Measured at amortised cost | 11,650,467 | 6,264,515 |
21. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 6,915 | 9,146 |
Deferred |
tax |
£ |
Balance at 1st April 2022 |
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 31st March 2023 |
FILETURN LIMITED (REGISTERED NUMBER: 03604089) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2023 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 10p | 8,500 | 8,500 |
Ordinary B | 10p | 1,500 | 1,500 |
10,000 | 10,000 |
The company's Ordinary and Ordinary B shares carry full voting rights and the rights to receive dividends as voted, which may be declared on one class of shares only, or on both classes of shares, at the discretion of the company and its directors. The company's Ordinary and Ordinary B shares rank pari passu with regard to the rights on winding up or other return of capital and to participate fully in the assets of the company available for distribution among the members. |
23. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1st April 2022 | 1,112,824 |
Deficit for the year | ( |
) | ( |
) |
Dividends | ( |
) | ( |
) |
At 31st March 2023 | 88,109 |
24. | ULTIMATE CONTROLLING PARTY |
The company is a wholly owned subsidiary of Fileturn Group Limited which produces group accounts incorporating the results of Fileturn Limited. |
Copies of the consolidated accounts of Fileturn Group Limited are publicly available and can be obtained from the company's registered office, Russell House, 140 High Street, Edgware, Middlesex, England, HA8 7LW |
The ultimate controlling party is Fileturn Group Limited. Fileturn Group Limited holds directly/indirectly 100% of the share capital in Fileturn Limited. |