Assured Flow Solutions Ltd
Financial Statements
For the year ended 31 December 2021
For Filing with Registrar
Company Registration No. 10497698 (England and Wales)
Assured Flow Solutions Ltd
Company Information
Directors
P Spratt
B Pere
(Appointed 17 March 2023)
J Hibbeler
(Appointed 20 January 2023)
Company number
10497698
Registered office
6th Floor
9 Appold Street
London
EC2A 2AP
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Assured Flow Solutions Ltd
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 7
Assured Flow Solutions Ltd
Balance Sheet
As at 31 December 2021
Page 1
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
4
2,574
4,391
Current assets
Debtors
5
210,184
102,839
Cash at bank and in hand
305,129
734,768
515,313
837,607
Creditors: amounts falling due within one year
6
(328,956)
(802,398)
Net current assets
186,357
35,209
Net assets
188,931
39,600
Capital and reserves
Called up share capital
2
2
Profit and loss reserves
188,929
39,598
Total equity
188,931
39,600
The directors of the company have elected not to include a copy of the profit and loss account 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 29 September 2023 and are signed on its behalf by:
B Pere
Director
Company Registration No. 10497698
ASSURED FLOW SOLUTIONS LTD
Assured Flow Solutions Ltd
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
Page 2
1
Accounting policies
Company information
Assured Flow Solutions Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, 9 Appold Street, London, EC2A 2AP.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
1.2
Going concern
At the time of approving the financial statements, the directors have confirmed their intentions to wind down the entity. The timeline for the entity being wound down is not yet certain.
At the balance sheet date, the company made a profit for the period of £149,331 and had net assets of £188,931 and has continued to trade profitably after the balance sheet date. Furthermore the company has a letter of support from its parent company, Southern Petroleum Laboratories, Inc. covering the shorter of 12 months from the approval of these financial statements or the company being wound up. The Directors have reviewed the financial standing of the parent entity and are confident it is able to continue providing such support. Accordingly the directors believe that the company will be able to continue to meet it's liabilities as they fall due for the period until the company is wound down. In view of the parent support and the fact that the decision to wind down was taken after the year end no adjustments have been made in these financial statements for the intended winding down.
1.3
Turnover
Turnover represents the fair value of services provided during the period to clients. Turnover is recognised as contract activity progresses and the right to consideration is earned. Fair value reflects the amount expected to be recoverable from clients and is based on services provided and expenses incurred, but excludes VAT.
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:
Plant and equipment
over 5 years at 20% per annum on a 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.
ASSURED FLOW SOLUTIONS LTD
Assured Flow Solutions Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
Page 3
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets 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.
1.6
Debtors and creditors
Debtors
Short term debtors are measured at transaction price, less any impairment. Loans and other debtors receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Creditors
Short term trade creditors and other current creditors payable on demand are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
1.7
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.
1.8
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 profit and loss account 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.
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 profit and loss account, 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.
ASSURED FLOW SOLUTIONS LTD
Assured Flow Solutions Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
Page 4
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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.
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
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.
The directors do not consider there to be any key estimates or judgements applicable to the company.
ASSURED FLOW SOLUTIONS LTD
Assured Flow Solutions Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2021
Page 5
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 7 (2020 - 7).
2021
2020
Number
Number
Total
7
7
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2021 and 31 December 2021
9,086
Depreciation and impairment
At 1 January 2021
4,695
Depreciation charged in the year
1,817
At 31 December 2021
6,512
Carrying amount
At 31 December 2021
2,574
At 31 December 2020
4,391
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
199,300
96,660
Other debtors
10,884
6,179
210,184
102,839
ASSURED FLOW SOLUTIONS LTD
Assured Flow Solutions Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2021
Page 6
6
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
68,913
24,520
Amounts owed to group undertakings
52,510
554,813
Corporation tax
34,759
6,786
Other taxation and social security
123,465
111,509
Other creditors
49,309
104,770
328,956
802,398
7
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
10,108
15,238
8
Events after the reporting date
On 1st May 2022, the company had entered into commitments for future minimum lease payments under non-cancellable operating leases of £33,444.
9
Related party transactions
The company has taken advantage of the exemption from disclosing transactions with members within a wholly owned group.
10
Parent company
The immediate parent undertaking is Southern Petroleum Laboratories, Inc. (2020: Assured Flow Solutions, LLC) a company incorporated in Houston, USA.
11
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.
ASSURED FLOW SOLUTIONS LTD
Assured Flow Solutions Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2021
11
Audit report information
(Continued)
Page 7
We draw attention to Note 1.2 to the financial statements which explains that the directors intend to liquidate the company and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern as described in Note 1.2. Our opinion is not modified in this respect of this matter.
The senior statutory auditor was Andrew Grieve and the auditor was Moore Kingston Smith LLP.