REGISTERED NUMBER: 12063987 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
FOR |
A.I.L HOLDINGS LIMITED |
REGISTERED NUMBER: 12063987 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
FOR |
A.I.L HOLDINGS LIMITED |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
A.I.L HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and |
Statutory Auditor |
11 Warwick Road |
Old Trafford |
Manchester |
M16 0QQ |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
The directors present their strategic report of the company and the group for the year ended 30 November 2021. |
REVIEW OF BUSINESS |
The directors consider that the group has had an exceptional year for 2021. |
The group continues to move forward with strong reserves and sufficient liquidity to support trading requirements in both the short and medium term. |
The directors continue to look to their market place and provide innovative solutions for their customers and to grow the business through securing both new customers and new product lines with existing customers. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The potential risk which would have the most impact on the business is the destruction of stock; the directors in order to mitigate this risk have taken out insurance on the stock and aim to keep stock holdings to a minimum. |
The business is susceptible to fluctuations in the value of key commodities such as oil and the US Dollar, however after assessing the risks faced it is felt acceptable by the directors at present to accept market fluctuations as they will be faced by other businesses within the industry. |
The directors, having considered their plans for the future, believe there is sufficient funding in place for the business to operate successfully and feel there is no requirement to secure any further finance at this time. |
Covid-19 |
Despite the current climate surrounding Covid-19, the company has continued to operate as normal |
ON BEHALF OF THE BOARD: |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
The directors present their report with the financial statements of the company and the group for the year ended 30 November 2021. |
DIVIDENDS |
Interim dividends per share were paid during the year as follows: |
A Ordinary £1 | - | £23500 |
B Ordinary £1 | - | £23500 |
C Ordinary £1 | - | £23500 |
The total distribution of dividends for the year ended 30 November 2021 will be £ 4,700,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 December 2020 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
AUDITORS |
The auditors, Dunhams, 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 |
A.I.L HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of A.I.L Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2021 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 November 2021 and of the group's profit 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 |
A.I.L HOLDINGS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 three, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
A.I.L HOLDINGS LIMITED |
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: |
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. |
Our approach was as follows: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and determined that the most significant are those which relate to the financial reporting framework (FRS 102 and the Companies Act 2006) and the relevant direct tax regulations. |
We understood how A.I.L Holdings Limited & its subsidiaries are complying with those frameworks by making enquiries with management, who in this instance are the same as those charged with governance to understand how the group maintains and communicates its policies and procedures in these areas and to understand the controls put in place to reduce the risk of non-compliance. |
We documented our understanding of controls put in place by management to reduce the opportunities for fraudulent transactions and enquired as to the results of their own assessment of those controls during the year. |
We assessed the susceptibility of the Group 's financial statements to material misstatement, including how fraud might occur, through internal team conversations and inquiry of management. |
We considered the risk of management override by testing a sample population of journals, investigating them to gain an understanding and then agreeing a sample of them to source documentation. |
We also reviewed and assessed both individually and cumulatively accounting estimates included in the financial statements to assess the extent to which they gave rise to indication of management bias, fraud, or material misstatement. |
Based on this understanding we designed our audit procedures to identify noncompliance with such laws and regulations. Our procedures involved verifying that material transactions were recorded in compliance with FRS 102 and, where appropriate, Companies Act 2006. |
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 |
A.I.L HOLDINGS 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 Auditor |
11 Warwick Road |
Old Trafford |
Manchester |
M16 0QQ |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
Period |
22.6.19 |
Year Ended | to |
30.11.21 | 30.11.20 |
Notes | £ | £ |
TURNOVER | 32,484,384 | 44,277,222 |
Cost of sales | (25,774,991 | ) | (34,133,307 | ) |
GROSS PROFIT | 6,709,393 | 10,143,915 |
Administrative expenses | (2,282,268 | ) | (3,696,505 | ) |
4,427,125 | 6,447,410 |
Other operating income | 64,733 | 52,157 |
OPERATING PROFIT | 4 | 4,491,858 | 6,499,567 |
Interest payable and similar expenses | 5 | (281,584 | ) | (811,743 | ) |
PROFIT BEFORE TAXATION | 4,210,274 | 5,687,824 |
Tax on profit | 6 | (1,086,234 | ) | (1,733,814 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 3,124,040 | 3,954,010 |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
Period |
22.6.19 |
Year Ended | to |
30.11.21 | 30.11.20 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 3,124,040 | 3,954,010 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
3,124,040 |
3,954,010 |
Total comprehensive income attributable to: |
Owners of the parent | 3,124,040 | 3,954,010 |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
CONSOLIDATED BALANCE SHEET |
30 NOVEMBER 2021 |
2021 | 2020 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 11,592,219 | 13,120,863 |
Tangible assets | 10 | 108,721 | 28,664 |
Investments | 11 | - | - |
11,700,940 | 13,149,527 |
CURRENT ASSETS |
Stocks | 12 | 3,171,279 | 2,392,774 |
Debtors | 13 | 7,069,551 | 6,708,083 |
Cash at bank and in hand | 3,617,724 | 39,180 |
13,858,554 | 9,140,037 |
CREDITORS |
Amounts falling due within one year | 14 | (12,064,008 | ) | (7,229,655 | ) |
NET CURRENT ASSETS | 1,794,546 | 1,910,382 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
13,495,486 |
15,059,909 |
PROVISIONS FOR LIABILITIES | 18 | (13,792 | ) | (2,255 | ) |
NET ASSETS | 13,481,694 | 15,057,654 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 300 | 300 |
Share premium | 20 | 12,007,350 | 12,007,350 |
Retained earnings | 20 | 1,474,044 | 3,050,004 |
SHAREHOLDERS' FUNDS | 13,481,694 | 15,057,654 |
The financial statements were approved by the Board of Directors and authorised for issue on 14 June 2022 and were signed on its behalf by: |
Mr B G Jones - Director |
Mr D Farmer - Director |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
COMPANY BALANCE SHEET |
30 NOVEMBER 2021 |
2021 | 2020 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash in hand |
CREDITORS |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 8,655,503 | 9,076,133 |
The financial statements were approved by the Board of Directors and authorised for issue on |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Changes in equity |
Issue of share capital | 300 | - | 12,007,350 | 12,007,650 |
Dividends | - | (904,006 | ) | - | (904,006 | ) |
Total comprehensive income | - | 3,954,010 | - | 3,954,010 |
Balance at 30 November 2020 | 300 | 3,050,004 | 12,007,350 | 15,057,654 |
Changes in equity |
Dividends | - | (4,700,000 | ) | - | (4,700,000 | ) |
Total comprehensive income | - | 3,124,040 | - | 3,124,040 |
Balance at 30 November 2021 | 300 | 1,474,044 | 12,007,350 | 13,481,694 |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 November 2020 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 November 2021 |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
Period |
22.6.19 |
Year Ended | to |
30.11.21 | 30.11.20 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 10,054,419 | 9,681,093 |
Interest paid | (447,299 | ) | (646,028 | ) |
Tax paid | (1,421,855 | ) | (1,051,969 | ) |
Net cash from operating activities | 8,185,265 | 7,983,096 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (116,932 | ) | (11,206 | ) |
Purchase of fixed asset investments | - | (5,883,974 | ) |
Net cash from investing activities | (116,932 | ) | (5,895,180 | ) |
Cash flows from financing activities |
Loan repayments in year | (3,789,789 | ) | (2,041,283 | ) |
Amount introduced by directors | - | 896,553 |
Equity dividends paid | (700,000 | ) | (904,006 | ) |
Net cash from financing activities | (4,489,789 | ) | (2,048,736 | ) |
Increase in cash and cash equivalents | 3,578,544 | 39,180 |
Cash and cash equivalents at beginning of year |
2 |
39,180 |
- |
Cash and cash equivalents at end of year | 2 | 3,617,724 | 39,180 |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
1. | RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
Period |
22.6.19 |
Year Ended | to |
30.11.21 | 30.11.20 |
£ | £ |
Profit for the financial year | 3,124,040 | 3,954,010 |
Depreciation charges | 1,565,519 | 2,186,201 |
Finance costs | 281,584 | 811,743 |
Taxation | 1,086,234 | 1,733,814 |
6,057,377 | 8,685,768 |
(Increase)/decrease in stocks | (778,505 | ) | 1,072,848 |
Increase in trade and other debtors | (361,468 | ) | (2,674,997 | ) |
Increase in trade and other creditors | 5,137,015 | 2,597,474 |
Cash generated from operations | 10,054,419 | 9,681,093 |
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 30 November 2021 |
30.11.21 | 1.12.20 |
£ | £ |
Cash and cash equivalents | 3,617,724 | 39,180 |
Period ended 30 November 2020 |
30.11.20 | 22.6.19 |
£ | £ |
Cash and cash equivalents | 39,180 | - |
3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
At 1.12.20 | Cash flow | At 30.11.21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 39,180 | 3,578,544 | 3,617,724 |
39,180 | 3,578,544 | 3,617,724 |
Debt |
Debts falling due within 1 year | (3,789,789 | ) | 3,789,789 | - |
(3,789,789 | ) | 3,789,789 | - |
Total | (3,750,609 | ) | 7,368,333 | 3,617,724 |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
1. | STATUTORY INFORMATION |
A.I.L Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The financial statements are presented rounded to the nearest pound sterling. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the company and entities controlled by the group (its subsidiaries). |
Control is achieved where the group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
The results of subsidiaries acquired or disposed of during the year are included in total comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate using accounting policies consistent with those of the parent. |
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. |
Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the Company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below. |
Stock Provision |
Management review the stock levels and recent movements to determine if a a provision is required against slow moving items based on previous experience and expected order levels. |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
The group imports and distributes a number of packaging products. |
Sales of goods are recognised on delivery, when the customer has full discretion over the channel and price to sell the product and there is no unfulfilled obligation that could affect the customer’s acceptance of the product. Delivery occurs when the goods have been shipped to the location specified by the customer, the risks of obsolescence or loss have been transferred to the customer, the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed or the company has objective evidence that all criteria for acceptance have been satisfied. |
In some instances goods are shipped direct from the supplier to the customer and the sale of these goods is recognised on receipt of the Bill of Lading showing the order depart for the customer. |
Goods to some customers are sold with volume rebates and also with the provision for the customer to return faulty goods. Sales are measured at the prices specified in the sale contract, net of estimated volume rebates and returns. Volume rebates are assessed based on anticipated annual purchases. Accumulated experience is used to estimate and provide for the discounts and returns. |
Goodwill |
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 |
Fixtures and fittings | - |
Motor vehicles | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is determined on the average cost method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the inventory to its present location and condition. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
2. | ACCOUNTING POLICIES - continued |
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. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Financial instruments |
i. Financial assets |
Basic financial assets, including trade and other receivables, cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled; or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party; or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
ii. Financial liabilities |
Basic financial liabilities, including trade and other payables and bank loans 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 receipts discounted at a market rate of interest. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
iii. Share Capital |
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds. |
Dividends and other distributions to the group’s shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity. |
Operating leases |
Rentals applicable to operating leases where substantially all the benefits of risks and ownership remain with the lessor are charged against profit on a straight line basis over the lease term. |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
2. | ACCOUNTING POLICIES - continued |
Impairment of assets |
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss. |
If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss. |
3. | EMPLOYEES AND DIRECTORS |
Period |
22.6.19 |
Year Ended | to |
30.11.21 | 30.11.20 |
£ | £ |
Wages and salaries | 431,316 | 810,009 |
Social security costs | 45,802 | 84,800 |
Other pension costs | 3,677 | 5,046 |
480,795 | 899,855 |
The average number of employees during the year was NIL (2020 - NIL). |
The average number of employees by undertakings that were proportionately consolidated during the year was 11 (2020 - 14 ) . |
Period |
22.6.19 |
Year Ended | to |
30.11.21 | 30.11.20 |
£ | £ |
Directors' remuneration | 100,000 | 243,867 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
Period |
22.6.19 |
Year Ended | to |
30.11.21 | 30.11.20 |
£ | £ |
Depreciation - owned assets | 36,875 | 20,622 |
Goodwill amortisation | 1,528,644 | 2,165,579 |
Auditors' remuneration | 6,500 | 5,500 |
Other non- audit services | 15,621 | 25,648 |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
22.6.19 |
Year Ended | to |
30.11.21 | 30.11.20 |
£ | £ |
Loan note interest | 281,584 | 811,743 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
Period |
22.6.19 |
Year Ended | to |
30.11.21 | 30.11.20 |
£ | £ |
Current tax: |
UK corporation tax | 1,074,697 | 1,733,984 |
Deferred tax | 11,537 | (170 | ) |
Tax on profit | 1,086,234 | 1,733,814 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
Period |
22.6.19 |
Year Ended | to |
30.11.21 | 30.11.20 |
£ | £ |
A Ordinary shares of £1 each |
Interim | 1,950,500 | 375,162 |
B Ordinary shares of £1 each |
Interim | 399,500 | 76,841 |
C Ordinary shares of £1 each |
Interim | 2,350,000 | 452,003 |
4,700,000 | 904,006 |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 December 2020 |
and 30 November 2021 | 15,300,942 |
AMORTISATION |
At 1 December 2020 | 2,180,079 |
Amortisation for year | 1,528,644 |
At 30 November 2021 | 3,708,723 |
NET BOOK VALUE |
At 30 November 2021 | 11,592,219 |
At 30 November 2020 | 13,120,863 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 December 2020 | 64,963 | 29,898 | 94,861 |
Additions | 11,054 | 105,878 | 116,932 |
At 30 November 2021 | 76,017 | 135,776 | 211,793 |
DEPRECIATION |
At 1 December 2020 | 52,065 | 14,132 | 66,197 |
Charge for year | 8,669 | 28,206 | 36,875 |
At 30 November 2021 | 60,734 | 42,338 | 103,072 |
NET BOOK VALUE |
At 30 November 2021 | 15,283 | 93,438 | 108,721 |
At 30 November 2020 | 12,898 | 15,766 | 28,664 |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 December 2020 |
and 30 November 2021 |
NET BOOK VALUE |
At 30 November 2021 |
At 30 November 2020 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Suite H, Level 2 No 1 Booth Park |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
12. | STOCKS |
Group |
2021 | 2020 |
£ | £ |
Finished goods | 3,171,279 | 2,392,774 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Trade debtors | 5,606,977 | 5,673,703 |
Amounts owed by group undertakings | - | - |
Prepayments and accrued income | 1,462,574 | 1,034,380 |
7,069,551 | 6,708,083 |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Debentures (see note 15) | - | 3,789,789 |
Trade creditors | 1,060,625 | 517,038 |
Tax | 425,164 | 772,322 |
VAT | 1,359,998 | 861,152 | - | - |
Other creditors | 5,116,327 | 801,295 |
Directors' current accounts | 3,660,000 | - | 3,660,000 | - |
Accrued expenses | 441,894 | 488,059 |
12,064,008 | 7,229,655 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Loan notes | - | 3,789,789 | - | 3,789,789 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable | operating leases |
2021 | 2020 |
£ | £ |
Within one year | 19,757 | 14,741 |
Between one and five years | 47,747 | 67,505 |
67,504 | 82,246 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2021 | 2020 |
£ | £ |
Other creditors | 4,776,327 | 801,295 |
HSBC Bank PLC holds a fixed and floating charge over all assets of the company and its subsidiaries. |
A.I.L HOLDINGS LIMITED (REGISTERED NUMBER: 12063987) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
18. | PROVISIONS FOR LIABILITIES |
Group |
2021 | 2020 |
£ | £ |
Deferred tax | 13,792 | 2,255 |
Group |
Deferred |
tax |
£ |
Balance at 1 December 2020 | 2,255 |
Provided during year | 11,537 |
Aquired in Subsidiary |
Balance at 30 November 2021 | 13,792 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
A Ordinary | £1 | 83 | 83 |
B Ordinary | £1 | 17 | 17 |
C Ordinary | £1 | 100 | 100 |
Preference | £1 | 100 | 100 |
300 | 300 |
20. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 December 2020 | 3,050,004 | 12,007,350 | 15,057,354 |
Profit for the year | 3,124,040 | 3,124,040 |
Dividends | (4,700,000 | ) | (4,700,000 | ) |
At 30 November 2021 | 1,474,044 | 12,007,350 | 13,481,394 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 December 2020 | 20,179,477 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30 November 2021 | 24,134,980 |