Company registration number 11537649 (England and Wales)
OKTRA REGIONS LIMITED (FORMERLY OKTRA SOUTH LIMITED)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2022
PAGES FOR FILING WITH REGISTRAR
OKTRA REGIONS LIMITED (FORMERLY OKTRA SOUTH LIMITED)
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 11
OKTRA REGIONS LIMITED (FORMERLY OKTRA SOUTH LIMITED)
STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2022
31 May 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
39,958
48,090
Current assets
Stocks
5
298,471
260,089
Debtors
6
3,503,977
1,522,299
Cash at bank and in hand
2,924,817
2,921,176
6,727,265
4,703,564
Creditors: amounts falling due within one year
7
(5,539,091)
(2,902,744)
Net current assets
1,188,174
1,800,820
Total assets less current liabilities
1,228,132
1,848,910
Provisions for liabilities
8
(8,146)
(6,999)
Deferred income
(423,057)
(813,795)
Net assets
796,929
1,028,116
Capital and reserves
Called up share capital
11
106
100
Share premium account
32,800
Profit and loss reserves
764,023
1,028,016
Shareholders' funds
796,929
1,028,116
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 9 September 2022 and are signed on its behalf by:
Mr M Murray
Director
Company Registration No. 11537649
OKTRA REGIONS LIMITED (FORMERLY OKTRA SOUTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2022
- 2 -
1
Accounting policies
Company information
Oktra Regions Limited (formerly Oktra South Limited) is a private company limited by shares incorporated in England and Wales. The registered office is 1 Bickenhall Mansions, Bickenhall Street, London, W1U 6BP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of exemptions available to subsidiaries whose results are consolidated into publicly available financial statements. As such, the company will not produce a cash flow statement.
1.2
Going concern
The truecompany's forecasts show that it will be profitable over the next 12 months, the company has no external debt. The directors are confident, following a review of the company's cash flow projections over the next twelve months that the company has sufficient resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the company's financial statements.
1.3
Turnover
Turnover represents the total invoice value, excluding value added tax, of sales made during the period and derives from the provision of goods and services falling within the company's ordinary activities.
In respect of services where a project has only been partially completed at the reporting date, turnover represents the value of those services provided to date based on the proportion of the total expected consideration at completion. Where amounts are invoiced in advance of services provided, such amounts are recorded as deferred income. Similarly, where services are invoiced in arrears, such amounts are recorded as accrued income and included within debtors falling due within one year.
Retentions are invoiced in two stages, 50% at the time of practical completion of the project and 50% at the end of the defect period. However, income from Retentions is recognised based on the stage of completion of works completed.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Straight line over the life of the lease
Plant and equipment
33.33% per annum straight line basis
Office equipment
20% per annum straight line basis
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.
OKTRA REGIONS LIMITED (FORMERLY OKTRA SOUTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
1
Accounting policies
(Continued)
- 3 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Work in progress and long-term contracts
Work in progress is valued at the lower of cost and net realisable value.
Long term contracts are assessed on a contract by contract basis and reflected in the income statement by recording turnover and related costs as contract activity progresses. Turnover is ascertained in a manner appropriate to the stage of completion of the contract, and credit taken for profit earned to date when the outcome of the contract can be assessed with reasonable certainty. The amount by which turnover exceeds payments on account is classified as accrued income and included in debtors; to the extent that payments on account exceed relevant turnover and work in progress balances, the excess is included as deferred income. The amount of work in progress at cost net of amounts transferred to cost of sales, less provision for foreseeable losses and payments on account not matched with turnover, is included within stocks.
1.7
Cash at bank and in hand
Cash at bank and in hand are basic financial assets measured at fair value at the reporting date and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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 in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
OKTRA REGIONS LIMITED (FORMERLY OKTRA SOUTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
1
Accounting policies
(Continued)
- 4 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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 classified as receivable within one year are not amortised.
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 creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the 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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
OKTRA REGIONS LIMITED (FORMERLY OKTRA SOUTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Share-based payments
The company operates an unapproved option scheme which allows employees to acquire shares in the company. The grant date fair value of share-based payment awards granted is recognised as an employee expense with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the awards. The fair value of the options granted is measured using an option pricing model, taking into account the terms and conditions upon which the options were granted. The fair value will be charged as an expense in the profit and loss account over the vesting period and the charge is adjusted each year to reflect the expected and actual level of vesting.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
OKTRA REGIONS LIMITED (FORMERLY OKTRA SOUTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 6 -
2
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 amount 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Revenue and profit recognition
The estimation techniques used for revenue and profit recognition in respect of construction contracts require forecasts to be made of the outcome of such contracts which require assessments and judgements to be made on the recovery of pre-contract costs, changes in the scope of work, contract programmes, maintenance and defects liabilities, changes in costs and stage of completion.
Recoverable value of recognised receivables
The recoverability of trade and other receivables is regularly reviewed in the light of available economic information specific to each receivable and provisions are recognised for balances considered to be irrecoverable.
Provisions
Provisions are liabilities of uncertain timing or amount and therefore in making a reliable estimate of the amount and timing of liabilities judgement is applied and re-evaluated at each reporting date.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Sales
9
6
Administration
22
11
Director
2
3
Total
33
20
OKTRA REGIONS LIMITED (FORMERLY OKTRA SOUTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 7 -
4
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Office equipment
Total
£
£
£
£
Cost
At 1 June 2021
47,430
12,683
29,924
90,037
Additions
1,395
1,206
19,432
22,033
At 31 May 2022
48,825
13,889
49,356
112,070
Depreciation and impairment
At 1 June 2021
25,359
6,544
10,044
41,947
Depreciation charged in the year
17,776
4,261
8,128
30,165
At 31 May 2022
43,135
10,805
18,172
72,112
Carrying amount
At 31 May 2022
5,690
3,084
31,184
39,958
At 31 May 2021
22,071
6,139
19,880
48,090
5
Stocks
2022
2021
£
£
Work in progress
298,471
260,089
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,889,485
892,499
Amounts owed by group undertakings
4,886
Other debtors
42,276
2,057
Prepayments
11,534
14,580
Accrued income
1,555,796
613,163
3,503,977
1,522,299
OKTRA REGIONS LIMITED (FORMERLY OKTRA SOUTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 8 -
7
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
3,758,201
1,577,639
Amounts owed to group undertakings
116,148
175,962
Corporation tax
38,412
157,082
Other taxation and social security
1,153,921
678,343
Other creditors
5,682
8,548
Accruals
466,727
305,170
5,539,091
2,902,744
8
Provisions for liabilities
2022
2021
£
£
Deferred tax liabilities
9
8,146
6,999
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
8,146
6,999
2022
Movements in the year:
£
Liability at 1 June 2021
6,999
Charge to profit or loss
1,147
Liability at 31 May 2022
8,146
The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances.
10
Share-based payment transactions
Certain employees of the company have been granted unapproved options over the company's ordinary shares as follows:
OKTRA REGIONS LIMITED (FORMERLY OKTRA SOUTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
10
Share-based payment transactions
(Continued)
- 9 -
Number of share options
Weighted average exercise price
2022
2021
2022
2021
Number
Number
£
£
Outstanding at 1 June 2021
30,928
Granted
30,928
Outstanding at 31 May 2022
30,928
30,928
Exercisable at 31 May 2022
The options outstanding at 31 May 2022 have an exercise price of £0.0001. The 30,928 options issued on 13 June 2020 have a remaining contract life of 8 years.
The options are subject to a number of vesting conditions and are exercisable between the date of the grant and the end of the exercise period. The options become exercisable following any of the following triggers:
Admission (i.e. the first occasion on which ordinary shares in the capital of the company are admitted to the Official List of the UK Listing Authority or to trading on AIM or permission is given for them to be traded on any other share market approved for this purpose by the holders of a majority of the ordinary share capital);
An asset sale;
A company sale; and
Any other circumstances at the discretion of the parent company.
Grant of share options
The fair value of the options granted to the employees in June 2020 were calculated using the Black-Scholes pricing model which gave a fair value of £0.19 per option. The total charge for the options based on the fair value calculated by the pricing model was £5,962. The amount is not significant and has not been provided.
OKTRA REGIONS LIMITED (FORMERLY OKTRA SOUTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 10 -
11
Share capital
2022
2021
£
£
Ordinary share capital
Issued and fully paid
1,062,500 (2021: 1,000,000) Ordinary shares of 0.01p (2019: £1) each
106
100
On 1 February 2022, the company allotted 62,500 Ordinary shares of £0.0001 at £0.5249 per share to an existing shareholder.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Guy Richardson and the auditor was Moore Kingston Smith LLP.
13
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
186,558
48,803
Between two and five years
202,819
12,201
389,377
61,004
OKTRA REGIONS LIMITED (FORMERLY OKTRA SOUTH LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 11 -
14
Related party transactions
Dividends
80% of the shares in the company are owned by Vensyn Group Limited.
During the year, dividends of £320,000 (2021: £73,924) and £80,000 (2021: £13,045) were paid to Vensyn Group Limited and Mr M Murray, a director of the company, respectively.
Vensyn Group Limited
During the year, the company was charged management expenses by Vensyn Group Limited of £240,000 (2021: £120,000). At the reporting date £40,810 (2021: £Nil) was owed by the company.
Oktra Limited
100% of the shares of Oktra Limited are owned by Vensyn Group Limited.
During the year, the company made sales to Oktra Limited of £266,699 (2021: £3,825,039) and purchased services of £54,181 (2021: £171,967) from Oktra Limited. In addition, administrative expenses were recharged to the company of £755,818 (2021: £292,090). At the reporting date £4,886 (2021: £84,467 was owed by the company) was owed to the company.
Affinity Flooring Limited
100% of the shares of Affinity Flooring Limited are owned by Vensyn Group Limited.
During the year, the company bought services of £135,758 (2021: £16,705) from Affinity Flooring Limited.
The company was charged £Nil (2021: £14,263) for Corporation Tax group relief by Affinity Flooring Limited. At the reporting date £75,338 (2021: £14,263) was owed by the company.
Oktra Interiors Limited
100% of the shares of Oktra Interiors Limited are owned by Vensyn Group Limited.
The company was charged £Nil (2021: £77,232) for Corporation Tax group relief by Oktra Interiors Limited. At the reporting date £Nil (2021: £77,232) was owed by the company.
15
Ultimate controlling party
The immediate parent company is Vensyn Group Limited, whose consolidated financial statements include this company’s results.
The ultimate parent company is I45 Limited, whose consolidated financial statements include this company’s results.
Mr G Andrew is the ultimate controlling party.
2022-05-312021-06-01false12 September 2022CCH SoftwareCCH Accounts Production 2022.200No description of principal activityThis audit opinion is unqualifiedM MurrayA Moskowa-StachowiczMr L Shanks115376492021-06-012022-05-31115376492022-05-31115376492021-05-3111537649core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-05-3111537649core:PlantMachinery2022-05-3111537649core:FurnitureFittings2022-05-3111537649core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-05-3111537649core:PlantMachinery2021-05-3111537649core:FurnitureFittings2021-05-3111537649core:CurrentFinancialInstrumentscore:WithinOneYear2022-05-3111537649core:CurrentFinancialInstrumentscore:WithinOneYear2021-05-3111537649core:CurrentFinancialInstruments2022-05-3111537649core:CurrentFinancialInstruments2021-05-3111537649core:ShareCapital2022-05-3111537649core:ShareCapital2021-05-3111537649core:SharePremium2022-05-3111537649core:SharePremium2021-05-3111537649core:RetainedEarningsAccumulatedLosses2022-05-3111537649core:RetainedEarningsAccumulatedLosses2021-05-3111537649bus:Director32021-06-012022-05-3111537649core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-06-012022-05-3111537649core:PlantMachinery2021-06-012022-05-3111537649core:FurnitureFittings2021-06-012022-05-31115376492020-06-012021-05-3111537649core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-05-3111537649core:PlantMachinery2021-05-3111537649core:FurnitureFittings2021-05-31115376492021-05-31115376492020-05-3111537649core:WithinOneYear2022-05-3111537649core:WithinOneYear2021-05-3111537649core:BetweenTwoFiveYears2022-05-3111537649core:BetweenTwoFiveYears2021-05-3111537649bus:PrivateLimitedCompanyLtd2021-06-012022-05-3111537649bus:SmallCompaniesRegimeForAccounts2021-06-012022-05-3111537649bus:FRS1022021-06-012022-05-3111537649bus:Audited2021-06-012022-05-3111537649bus:Director12021-06-012022-05-3111537649bus:Director22021-06-012022-05-3111537649bus:FullAccounts2021-06-012022-05-31xbrli:purexbrli:sharesiso4217:GBP