Flexiglobal (UK) Limited - Limited company accounts 18.2

REGISTERED NUMBER: 06663662 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2018

FOR

FLEXIGLOBAL (UK) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Statement of Directors' Responsibilities

4

Report of the Independent Auditors

5

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

Mrs M H L Taljaard

Qa Nominees Limited

REGISTERED OFFICE:

Brooklands Road

Adwick-Le-Street

Doncaster

South Yorkshire

DN6 7BA

REGISTERED NUMBER:

06663662 (England and Wales)

AUDITORS:

D & J Randles Limited

Chartered Accountants

Statutory Auditors

203 Askern Road

Bentley

Doncaster

South Yorkshire

DN5 0JR

The directors present their strategic report for the year ended 31 March 2018.

REVIEW OF BUSINESS

The results for the business show that turnover has decreased by 2.02% (2017 - an increase of 3.9%) to £13,517,982

(2017 - £13,796,665). Gross profit margin has decreased to 4.31% from 8.17% which reflects the increase in costs

during the period under review. This has resulted in a loss before tax of £223,319 compared to a profit before tax in

2017 of £299,907.

No dividends have been paid during the year.

At the end of the year, the net assets of the company totalled £713,672 (2017: £718,716).

Given the straightforward nature of the business, the company's directors are of the opinion that analysis of KPIs is not

necessary for an understanding of the development, performance or nature of the business.

The Board of the ultimate holding company, Flexituff International Ltd, will shortly be determining whether or not to

discontinue its non-core operations, including the operations of Flexiglobal (UK) Ltd. At the date of approval of the

accounts, the impact of this decision on the company's operations is not known, but it may mean that the company will

shortly no longer be a going concern. However, should this prove to be the case, no adjustments are required to the

accounts in this respect.

PRINCIPAL RISKS AND UNCERTAINTIES

In order to manage the company successfully, the strategic and operational risks facing the company are regularly

reviewed and the company's risk management procedures are updated to reflect the process.

ON BEHALF OF THE BOARD:

Mrs M H L Taljaard - Director

28 May 2018

The directors present their report with the financial statements of the company for the year ended 31 March 2018.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the wholesale of building packaging.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2018.

DIRECTORS

The directors during the year under review were:

K J Upperdine

- resigned 29.6.17

A D Cresswell

- resigned 30.1.18

S Kalani

- resigned 1.2.18

Mrs M H L Taljaard

- appointed 31.1.18

Qa Nominees Limited

- appointed 10.2.18

The directors holding office at 31 March 2018 did not hold any beneficial interest in the issued share capital of the

company at date of appointment or 31 March 2018.

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 she ought to have taken

as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors

are aware of that information.

AUDITORS

The auditors, D & J Randles Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs M H L Taljaard - Director

28 May 2018

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.

Opinion

We have audited the financial statements of Flexiglobal (UK) Limited (the 'company') for the year ended 31 March 2018

which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity,

Cash Flow Statement and Notes to the Cash Flow Statement, 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).

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.

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2018 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

We draw your attention to the matters noted in Note 1 of the Financial Statements regarding the basis of preparing the

Financial Statements. As stated in the Note, it is possible that in the near future, the Board of the ultimate holding

company, Flexituff International Ltd, may decide to discontinue its non-core operations, including the operations of

Flexiglobal (UK) Ltd and therefore the company may shortly no longer be a going concern. Our opinion is not modified

in this respect.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic

Report, the Report of the Directors and the Statement of Directors' Responsibilities, 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 there is a material misstatement in the financial

statements or a material misstatement of the other information. 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.

Opinion 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.

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.

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.

D F Randles FCA (Senior Statutory Auditor)

for and on behalf of D & J Randles Limited

Chartered Accountants

Statutory Auditors

203 Askern Road

Bentley

Doncaster

South Yorkshire

DN5 0JR

28 May 2018

TURNOVER

3

13,517,982

13,796,665

Cost of sales

(12,935,937

)

(12,669,273

)

GROSS PROFIT

582,045

1,127,392

Administrative expenses

(768,073

)

(753,211

)

(186,028

)

374,181

Other operating income

30,000

-

OPERATING (LOSS)/PROFIT

(156,028

)

374,181

Interest receivable and similar income

7

33

(156,021

)

374,214

Interest payable and similar expenses

5

(67,298

)

(74,307

)

(LOSS)/PROFIT BEFORE TAXATION

6

(223,319

)

299,907

Tax on (loss)/profit

7

78,275

(66,792

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(145,044

)

233,115

(LOSS)/PROFIT FOR THE YEAR

(145,044

)

233,115

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(145,044

)

233,115

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

34,745

1,429,033

34,745

1,429,033

CURRENT ASSETS

Stocks

10

723,452

2,684,095

Debtors

11

2,496,060

3,707,589

Cash at bank and in hand

9,573

349,642

3,229,085

6,741,326

CREDITORS

Amounts falling due within one year

12

(2,690,158

)

(7,018,353

)

NET CURRENT ASSETS/(LIABILITIES)

538,927

(277,027

)

TOTAL ASSETS LESS CURRENT LIABILITIES

573,672

1,152,006

CREDITORS

Amounts falling due after more than one year

13

-

(416,008

)

PROVISIONS FOR LIABILITIES

16

-

(17,282

)

NET ASSETS

573,672

718,716

CAPITAL AND RESERVES

Called up share capital

17

100,000

100,000

Retained earnings

18

473,672

618,716

SHAREHOLDERS' FUNDS

573,672

718,716

The financial statements were approved by the Board of Directors on 28 May 2018 and were signed on its behalf by:

Mrs M H L Taljaard - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2016

100,000

385,601

485,601

Changes in equity

Total comprehensive income

-

233,115

233,115

Balance at 31 March 2017

100,000

618,716

718,716

Changes in equity

Total comprehensive income

-

(145,044

)

(145,044

)

Balance at 31 March 2018

100,000

473,672

573,672

Cash flows from operating activities

Cash generated from operations

1

(1,117,059

)

509,728

Interest paid

(67,298

)

(74,307

)

Tax paid

(68,255

)

-

Taxation refund

5,150

5,779

Net cash from operating activities

(1,247,462

)

441,200

Cash flows from investing activities

Purchase of tangible fixed assets

(11,279

)

(9,058

)

Sale of tangible fixed assets

1,438,879

-

Interest received

7

33

Net cash from investing activities

1,427,607

(9,025

)

Cash flows from financing activities

Loan repayments in year

(520,214

)

(104,206

)

Net cash from financing activities

(520,214

)

(104,206

)

(Decrease)/increase in cash and cash equivalents

(340,069

)

327,969

Cash and cash equivalents at beginning of year

2

349,642

21,673

Cash and cash equivalents at end of year

2

9,573

349,642

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.18

31.3.17

£

£

(Loss)/profit before taxation

(223,319

)

299,907

Depreciation charges

39,106

39,740

Profit on disposal of fixed assets

(72,418

)

-

Finance costs

67,298

74,307

Finance income

(7

)

(33

)

(189,340

)

413,921

Decrease in stocks

1,960,643

53,435

Decrease/(increase) in trade and other debtors

1,267,372

(87,421

)

(Decrease)/increase in trade and other creditors

(4,155,734

)

129,793

Cash generated from operations

(1,117,059

)

509,728

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these

Balance Sheet amounts:

Year ended 31 March 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

9,573

349,642

Year ended 31 March 2017

31.3.17

1.4.16

£

£

Cash and cash equivalents

349,642

21,673

1.	STATUTORY INFORMATION

Flexiglobal (UK) Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

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 Board of the ultimate holding company, Flexituff International Ltd, will shortly be determining whether or

not to discontinue its non-core operations, including the operations of Flexiglobal (UK) Ltd. At the date of

approval of the accounts, the impact of this decision on the company's operations is not known, but it may mean

that the company will shortly no longer be a going concern. However, should this prove to be the case, no

adjustments are required to the accounts in this respect.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% on cost

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at

the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

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.

3.

TURNOVER

The turnover and loss (2017 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market for the year ended 31 March 2017 is given below:

£

United Kingdom

13,793,614

Other sales income

3,051

13,796,665

This analysis is not considered to be applicable to the year ended 31 March 2018.

4.	EMPLOYEES AND DIRECTORS

31.3.18

31.3.17

£

£

Wages and salaries

311,234

204,511

Other pension costs

4,168

2,463

315,402

206,974

The average number of employees during the year was as follows:

31.3.18

31.3.17

Directors

2

3

Administration and support

5

6

Sales

6

5

13

14

31.3.18

31.3.17

£

£

Directors' remuneration

9,477

9,437

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.18

31.3.17

£

£

Revenue interest

-

123

Mortgage

10,835

17,052

Factoring interest

56,463

57,132

67,298

74,307

6.	(LOSS)/PROFIT BEFORE TAXATION

The loss (2017 - profit) is stated after charging/(crediting):

31.3.18

31.3.17

£

£

Hire of plant and machinery

9,901

11,768

Other operating leases

10,000

-

Depreciation - owned assets

39,106

39,740

Profit on disposal of fixed assets

(72,418

)

-

Auditors' remuneration

5,500

5,000

Foreign exchange differences

399

(11

)

7.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

31.3.18

31.3.17

£

£

Current tax:

UK corporation tax

(51,392

)

62,476

Deferred tax

(26,883

)

4,316

Tax on (loss)/profit

(78,275

)

66,792

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:

31.3.18

31.3.17

£

£

(Loss)/profit before tax

(223,319

)

299,907

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 20% (2017 - 20%)

(44,664

)

59,981

Effects of:

Expenses not deductible for tax purposes

4,026

4,210

Capital allowances in excess of depreciation

(10,754

)

-

Depreciation in excess of capital allowances

-

4,064

Adjustments to tax charge in respect of previous periods

-

(5,779

)

Timing differences

(26,883

)

4,316

Total tax (credit)/charge

(78,275

)

66,792

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2017

and 31 March 2018

142,000

AMORTISATION

At 1 April 2017

and 31 March 2018

142,000

NET BOOK VALUE

At 31 March 2018

-

At 31 March 2017

-

9.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

COST

At 1 April 2017

1,567,637

37,640

43,935

1,649,212

Additions

-

-

11,279

11,279

Disposals

(1,567,637

)

-

-

(1,567,637

)

At 31 March 2018

-

37,640

55,214

92,854

DEPRECIATION

At 1 April 2017

172,436

22,498

25,245

220,179

Charge for year

28,740

3,784

6,582

39,106

Eliminated on disposal

(201,176

)

-

-

(201,176

)

At 31 March 2018

-

26,282

31,827

58,109

NET BOOK VALUE

At 31 March 2018

-

11,358

23,387

34,745

At 31 March 2017

1,395,201

15,142

18,690

1,429,033

10.

STOCKS

31.3.18

31.3.17

£

£

Stocks

723,452

2,684,095