Company Registration No. 03467040 (England and Wales)
OUTFORM GROUP UK LTD (FORMERLY ALREC LIMITED)
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED
31 MAY 2023
PAGES FOR FILING WITH REGISTRAR
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
OUTFORM GROUP UK LTD (FORMERLY ALREC LIMITED)
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 11
OUTFORM GROUP UK LTD (FORMERLY ALREC LIMITED)
BALANCE SHEET
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
4
16,986
31,380
Tangible assets
5
79,537
81,777
96,523
113,157
Current assets
Stocks
-
7
Debtors
6
904,500
2,981,683
Cash at bank and in hand
53,917
100,800
958,417
3,082,490
Creditors: amounts falling due within one year
7
(912,262)
(1,287,264)
Net current assets
46,155
1,795,226
Total assets less current liabilities
142,678
1,908,383
Provisions for liabilities
8
(116,961)
(111,307)
Net assets
25,717
1,797,076
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
25,617
1,796,976
Total equity
25,717
1,797,076
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.
OUTFORM GROUP UK LTD (FORMERLY ALREC LIMITED)
BALANCE SHEET (CONTINUED)
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 13 October 2023 and are signed on its behalf by:
D C Littlefield
J M Willoughby
Director
Director
Company Registration No. 03467040
OUTFORM GROUP UK LTD (FORMERLY ALREC LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MAY 2023
- 3 -
1
Accounting policies
Company information
Outform Group UK Ltd (formerly Alrec Limited) is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1 J4, 15 Doman Road, Camberley, Surrey, GU15 3LB.
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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Reporting period
During the current accounting period, the company changed its reference date from 31 December 2023 to 31 May 2023 to bring inline with the wider group. This does not apply to the comparative figures which cover the year ending 31 December 2022.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
OUTFORM GROUP UK LTD (FORMERLY ALREC LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Computer software
Over 5 years
1.6
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
Fixtures and fittings
Over 5 years, 8 years and 12 years
Office equipment
Between 3 and 5 years
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.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
OUTFORM GROUP UK LTD (FORMERLY ALREC LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 5 -
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 balance sheet 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.
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, 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.
OUTFORM GROUP UK LTD (FORMERLY ALREC LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 6 -
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 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.
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.12
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.
OUTFORM GROUP UK LTD (FORMERLY ALREC LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 7 -
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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 leases asset are consumed.
1.15
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tangible fixed assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Project completion and recognition
The company's policy is to recognise revenue for projects at the time of the completion of those projects. For projects with multiple stages with separable identifiable revenue allocated to each stage, the revenue for each stage is recognised at the completion of that stage.
OUTFORM GROUP UK LTD (FORMERLY ALREC LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2023
- 8 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
2022
Number
Number
Total
23
27
4
Intangible fixed assets
Computer Software
£
Cost
At 1 January 2023
207,400
Disposals
(38,738)
At 31 May 2023
168,662
Amortisation and impairment
At 1 January 2023
176,020
Amortisation charged for the period
14,394
Disposals
(38,738)
At 31 May 2023
151,676
Carrying amount
At 31 May 2023
16,986
At 31 December 2022
31,380
OUTFORM GROUP UK LTD (FORMERLY ALREC LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2023
- 9 -
5
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Office equipment
Total
£
£
£
£
Cost
At 1 January 2023
15,473
528,290
160,113
703,876
Additions
11,872
11,872
Disposals
(1,612)
(7,247)
(39,804)
(48,663)
At 31 May 2023
13,861
521,043
132,181
667,085
Depreciation and impairment
At 1 January 2023
15,459
457,779
148,861
622,099
Depreciation charged in the period
10,165
3,581
13,746
Eliminated in respect of disposals
(1,612)
(7,246)
(39,439)
(48,297)
At 31 May 2023
13,847
460,698
113,003
587,548
Carrying amount
At 31 May 2023
14
60,345
19,178
79,537
At 31 December 2022
14
70,511
11,252
81,777
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
490,457
644,978
Amounts owed by group undertakings
171,217
2,079,433
Other debtors
107,630
75,220
Prepayments and accrued income
135,196
182,052
904,500
2,981,683
OUTFORM GROUP UK LTD (FORMERLY ALREC LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2023
- 10 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
106,477
116,407
Amounts owed to group undertakings
303,426
343,213
Corporation tax
105,058
105,058
Other taxation and social security
119,603
32,232
Accruals and deferred income
277,698
690,354
912,262
1,287,264
8
Provisions for liabilities
2023
2022
£
£
Other provisions
132,500
120,000
Deferred tax (asset)/ liabilities
(15,539)
(8,693)
116,961
111,307
9
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 Steven Williams FCA and the auditor was TC Group.
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
207,519
212,758
Between two and five years
176,230
259,368
383,749
472,126
OUTFORM GROUP UK LTD (FORMERLY ALREC LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2023
- 11 -
11
Events after the reporting date
On the 1 June 2023, the Company completed the acquisition of some trade and certain assets from a fellow group company Outform UK Limited.
The acquisition is a non-adjusting event, though full disclosure of the transaction will be included in the financial statements to 31 May 2024.
The purchase price allocation is not yet complete as identifiable intangible asset valuations have not yet been finalised and it is therefore not possible to calculate the value of goodwill arising in respect of the business combination until these valuations are complete.
12
Controlling party
The Company’s immediate parent is Outform Group Emea Ltd, which is part of the Rapid Display Inc group, incorporated in the United States. Prior to September 2022, the ultimate parent was Cerla Holdings BV, incorporated in the Netherlands. In September 2022, Cerla Holdings BV was purchased by Rapid Displays Inc. There is no overall controlling party.
2023-05-312023-01-01false13 October 2023CCH SoftwareCCH Accounts Production 2023.200No description of principal activityThis audit opinion is unqualifiedD C LittlefieldJ M WilloughbyC D FraasS F HathawayA A Kooijman034670402023-01-012023-05-31034670402023-05-31034670402022-12-3103467040core:IntangibleAssetsOtherThanGoodwill2023-05-3103467040core:IntangibleAssetsOtherThanGoodwill2022-12-3103467040core:PlantMachinery2023-05-3103467040core:FurnitureFittings2023-05-3103467040core:ComputerEquipment2023-05-3103467040core:PlantMachinery2022-12-3103467040core:FurnitureFittings2022-12-3103467040core:ComputerEquipment2022-12-3103467040core:CurrentFinancialInstrumentscore:WithinOneYear2023-05-3103467040core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3103467040core:CurrentFinancialInstruments2023-05-3103467040core:CurrentFinancialInstruments2022-12-3103467040core:ShareCapital2023-05-3103467040core:ShareCapital2022-12-3103467040core:RetainedEarningsAccumulatedLosses2023-05-3103467040core:RetainedEarningsAccumulatedLosses2022-12-3103467040bus:Director12023-01-012023-05-3103467040bus:Director22023-01-012023-05-3103467040core:IntangibleAssetsOtherThanGoodwill2023-01-012023-05-3103467040core:ComputerSoftware2023-01-012023-05-3103467040core:PlantMachinery2023-01-012023-05-3103467040core:FurnitureFittings2023-01-012023-05-3103467040core:ComputerEquipment2023-01-012023-05-31034670402022-01-012022-12-3103467040core:IntangibleAssetsOtherThanGoodwill2022-12-3103467040core:PlantMachinery2022-12-3103467040core:FurnitureFittings2022-12-3103467040core:ComputerEquipment2022-12-31034670402022-12-3103467040core:WithinOneYear2023-05-3103467040core:WithinOneYear2022-12-3103467040core:BetweenTwoFiveYears2023-05-3103467040core:BetweenTwoFiveYears2022-12-3103467040bus:PrivateLimitedCompanyLtd2023-01-012023-05-3103467040bus:SmallCompaniesRegimeForAccounts2023-01-012023-05-3103467040bus:FRS1022023-01-012023-05-3103467040bus:Audited2023-01-012023-05-3103467040bus:Director32023-01-012023-05-3103467040bus:Director42023-01-012023-05-3103467040bus:Director52023-01-012023-05-3103467040bus:FullAccounts2023-01-012023-05-31xbrli:purexbrli:sharesiso4217:GBP