Avocor Limited - Period Ending 2017-06-30

Registration number: 03974449

Avocor Limited

Annual Report and Unaudited Financial Statements

for the Period from 1 May 2016 to 30 June 2017

Avocor Limited

Contents

Balance Sheet	1 to 2
Notes to the Financial Statements	3 to 8

Avocor Limited

(Registration number: 03974449)
Balance Sheet as at 30 June 2017

	Note	2017 £	2016 £
Fixed assets
Intangible assets	4	60,343	-
Tangible assets	5	28,736	-
		89,079	-
Current assets
Stocks	6	1,507,204	-
Debtors	7	1,607,590	-
Cash at bank and in hand		68,216	1
		3,183,010	1
Creditors: Amounts falling due within one year	8	(4,574,691)	-
Net current (liabilities)/assets		(1,391,681)	1
Net (liabilities)/assets		(1,302,602)	1
Capital and reserves
Called up share capital		300,000	1
Profit and loss account		(1,602,602)	-
Total equity		(1,302,602)	1

For the financial period ending 30 June 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

The notes on pages 3 to 8 form an integral part of these financial statements.

Page 1

Avocor Limited

(Registration number: 03974449)
Balance Sheet as at 30 June 2017

Approved and authorised by the Board on 15 July 2018 and signed on its behalf by:
 

.........................................

Mr Nigel Frederick Steljes

Director

The notes on pages 3 to 8 form an integral part of these financial statements.

Page 2

Avocor Limited

Notes to the Financial Statements for the Period from 1 May 2016 to 30 June 2017

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
2 Old Bath Road
Newbury
Berkshire
RG14 1QL
England

The principal place of business is:
Quatro House
Lyon Way
Frimley Road
Camberley
Surrey
GU16 7ER

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The accounts are prepared on the going concern basis. On 28th November, 2017 the Ordinary Share Capital of the Company was increased by £700,000 to £1,000,000. In addition, at the date of signing of the Accounts Shareholders’ Loans totalled £511,021.

The business was further supported by Personal Guarantees from Shareholders to Trade Creditors to a maximum of $3,500,000 and to Banks totalling £875,000.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Page 3

Avocor Limited

Notes to the Financial Statements for the Period from 1 May 2016 to 30 June 2017

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Fixtures and fittings	33% straight line basis
Office equipment	33% straight line basis

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Development costs and website	33% - 50% straight line basis

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Page 4

Avocor Limited

Notes to the Financial Statements for the Period from 1 May 2016 to 30 June 2017

3	Staff numbers

The average number of persons employed by the company (including directors) during the period, was 17 (2016 - 0).

4	Intangible assets

	Development costs and website  £	Total £
Cost or valuation
Additions internally developed	97,672	97,672
At 30 June 2017	97,672	97,672
Amortisation
Amortisation charge	37,329	37,329
At 30 June 2017	37,329	37,329
Carrying amount
At 30 June 2017	60,343	60,343

The aggregate amount of research and development expenditure recognised as an expense during the period is £Nil (2016 - £Nil).
 

Page 5

Avocor Limited

Notes to the Financial Statements for the Period from 1 May 2016 to 30 June 2017

5	Tangible assets

	Fixtures and fittings £	Office equipment £	Total £
Cost or valuation
Additions	13,335	30,907	44,242
Disposals	-	(3,088)	(3,088)
At 30 June 2017	13,335	27,819	41,154
Depreciation
Charge for the period	4,365	8,053	12,418
At 30 June 2017	4,365	8,053	12,418
Carrying amount
At 30 June 2017	8,970	19,766	28,736

6

Stocks

	2017 £	2016 £
Finished goods and goods for resale	1,507,204	-

7

Debtors

	2017 £	2016 £
Trade debtors	1,123,194	-
Prepayments	60,421	-
Other debtors	423,975	-
	1,607,590	-

Page 6

Avocor Limited

Notes to the Financial Statements for the Period from 1 May 2016 to 30 June 2017

8

Creditors

Creditors: amounts falling due within one year

	2017 £	2016 £
Due within one year
Loans and borrowings	454,581	-
Trade creditors	2,909,452	-
Taxation and social security	36,409	-
Other creditors	1,174,249	-
	4,574,691	-

Within loans and borrowings is an Invoice Finance Facility which is secured by a fixed and floating charge over the company's assets. The balance on the facility at the period end was £454,581 (2016: £nil).

9	Loans and borrowings

	2017 £	2016 £
Current loans and borrowings
Other borrowings	454,581	-

10	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £90,536 (2016 - £Nil).

11	Related party transactions

Other transactions with directors

Nigel Steljes had a loan with the company. At the balance sheet date the amount due to Nigel Steljes was £700,542 (2016: £nil).

Summary of transactions with other related parties

Shareholder transactions
 Sarah Large had a loan with the company. At the balance sheet date the amount due to Sarah Large was £137,607 (2016:£nil)
 

12	Non adjusting events after the financial period

In November 2017 the company's share capital increased to £1m by the conversion of shareholder loans.

Page 7

Avocor Limited

Notes to the Financial Statements for the Period from 1 May 2016 to 30 June 2017

13	Transition to FRS 102

There were no changes required as a result of transition to FRS 102.

Page 8