Registered number: 11156085
FIBRE ASSETS LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 MARCH 2023
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FIBRE ASSETS LIMITED
REGISTERED NUMBER: 11156085
BALANCE SHEET
AS AT 31 MARCH 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 3 October 2023.
The notes on pages 3 to 11 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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Comprehensive income for the period
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Total comprehensive income for the period
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Comprehensive income for the year
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Total comprehensive income for the year
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The notes on pages 3 to 11 form part of these financial statements.
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Fibre Assets Limited is a private company limited by shares. The Company registration number is 11156085 and was incorporated in the United Kingdom. The Company's registered office address is 13 Southwick Mews, London, Greater London, England, W2 1JG. Values are rounded to the nearest £.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
Despite the Company incurring a loss in the year of £5,186,327 and having overall net liabilities of £5,991,776, the directors have prepared the financial statements on the going concern basis.
The Directors have reviewed the Company's cash flow projections for the next 12 months. The Company holds an agreement with investors to provide funding up to a prescribed amount. The cash flow projections show that this additional investment will support the Company for the next 12 months.
The negative equity position on the balance sheet reflects the early stage of the business and the capital-intensive nature of the industry. As we move forward, the directors anticipate a reversal of this situation through a combination of increased revenues and prudent cost management.
During the financial year, the Company began its Full Fibre build in selected parts in the UK and gradually accelerated its roll-out plans via operational efficiencies and increases in resources. In the second half of the year the first customers were connected and started enjoying the high qualify fibre broadband service. The management team has demonstrated its commitment to fiscal responsibility and adaptability by implementing cost-saving measures without compromising the quality of service. Moreover, the Company is actively exploring partnerships and collaborations that will help optimise operational efficiencies and expand market reach.
The company continues to have the financial backing of its investors for the year ahead taking into account the losses it has incurred in its first full year of operations. Post year end, the Company has issued 20,300,000 preference shares at nominal value of £1 per share. The Company expects to reduce its losses for the year ahead and has received on-going commitment to sustain its operations and strategically navigate the competitive landscape in the UK.
The Directors believe that these strategies, along with the Company's financial resources and operational performance, will enable the Company to continue as a going concern for the foreseeable future. However, it is important to note that the future outcome of the contingencies and uncertainties outlined above cannot be predicted with certainty. The Company's ability to continue as a going concern is subject to the successful execution of management's plans, as well as external factors beyond the Company's control.
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Assets in the course of construction are not depreciated.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans 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.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors 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.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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The average monthly number of employees, including directors, during the year was 40 (15 month period ended 31 March 2022: 9).
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Charge for the year on owned assets
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Assets under construction
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Transfers between classes
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Charge for the year on owned assets
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Taxation and social security
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Accruals and deferred income
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The credit card balances are secured by a fixed charge over the bank accounts.
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Creditors: Amounts falling due after more than one year
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Share capital treated as debt (see note 11)
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The loan notes are secured by a fixed and floating charge over all the property or undertaking of the Company.
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Analysis of the maturity of loans is given below:
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Shares classified as equity
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Allotted, called up and fully paid
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1,387 (2022 - 1,387) Ordinary shares of £1.00 each
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Shares classified as debt
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Allotted, called up and fully paid
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3,487,268 (2022 - £nil) Preference shares of £1.00 each
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The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost and charge represents contributions payable by the Company to the fund and amounted to £60,697 (15 month period ended 31 March 2022: £5,350). At 31 March 2023, £41,620 (2022: £5,438) was due to the fund.
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Post balance sheet events
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On 15 June 2023, the Company issued 8,500,000 preference shares at nominal value of £1 per share.
On 22 August 2023, the Company issued 11,800,000 preference shares at nominal value of £1 per share.
The immediate parent undertaking is Fibre Assets Holdco Limited. The registered office is C/O Foresight Group, The Shard, 32 London Bridge Street, London, United Kingdom, SE1 9SG. This is the smallest group within which the Company belongs.
The ultimate parent undertaking is Averon Park Limited. The registered office is C/O Foresight Group Llp, The Shard, 32 London Bridge Street, London, United Kingdom, SE1 9SG. This is the largest group within which the Company belongs.
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The auditors' report on the financial statements for the year ended 31 March 2023 was unqualified.
The audit report was signed on 9 November 2023 by Aaron Widdows ACA FCCA (Senior Statutory Auditor) on behalf of Price Bailey LLP.
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