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REGISTERED NUMBER: 07354439 (England and Wales)











GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

FOR

VYNETT LIMITED

VYNETT LIMITED (REGISTERED NUMBER: 07354439)






CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Consolidated Statement of Comprehensive Income 8

Consolidated Statement of Financial Position 9

Company Statement of Financial Position 10

Consolidated Statement of Changes in Equity 11

Company Statement of Changes in Equity 12

Consolidated Statement of Cash Flows 13

Notes to the Consolidated Statement of Cash Flows 14

Notes to the Consolidated Financial Statements 16


VYNETT LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2020







DIRECTORS: Z B Johari
Mrs F B Mohamad Kunju
M Z B Muda





REGISTERED OFFICE: 6 Hunting Gate
Hitchin
Herts
SG4 0TJ





REGISTERED NUMBER: 07354439 (England and Wales)





INDEPENDENT AUDITORS: Bradshaw Johnson
Chartered Accountants
Statutory Auditor
Croft Chambers
11 Bancroft
Hitchin
Hertfordshire
SG5 1JQ

VYNETT LIMITED (REGISTERED NUMBER: 07354439)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020

The directors present their strategic report of the company and the group for the year ended 31 December 2020.

PRINCIPAL RISKS AND UNCERTAINTIES
Credit risk
The Group's credit risk is primarily attributable to its corporate trade debtors. Credit risk is managed by running credit checks on new and existing customers and by closely controlling payments against contractual agreements. Significant income is also generated from individual guests and private events. In these cases deposits are taken in advance and payment made without extending credit.

Commodity pricing risk
The Group is exposed to the risk of variations in pricing of energy, laundry and food and beverage products. Where appropriate the group enters into forward contracts and fixed pricing with suppliers to manage this risk.

Cash flow
The Group monitors cash flow as an important part of its day-to-day control procedures. The board considers cash flow projections on a monthly basis and ensures that appropriate facilities are available to be utilised for both working capital and capital expenditure needs.

Market risk
Chartridge Venues Group is pursuing a strategy of spreading its customer base across a broad spectrum of clients, both corporate and private in order to manage any risk of exposure to dominant clients or business sectors

FINANCIAL KEY PERFORMANCE INDICATORS
The directors consider the following to be the key performance indicators of the Group:

2020 2019 Variance
Revenue £852,533 £4,187,331 (80%)
Operating Loss (£3,696,961) (£3,018,965) (22%)

ON BEHALF OF THE BOARD:





M Z B Muda - Director


20 April 2023

VYNETT LIMITED (REGISTERED NUMBER: 07354439)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2020

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2020.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2020.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report.

Z B Johari
Mrs F B Mohamad Kunju
M Z B Muda

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). 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, Bradshaw Johnson, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





M Z B Muda - Director


20 April 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
VYNETT LIMITED

Qualified opinion
We have audited the financial statements of Vynett Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2020 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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, except for the possible side effects of the matter described in the Basis for qualified opinion section of our report, the financial statements:

- give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2020 and of the Group's loss 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 qualified opinion
With respect to cash and credit card catering and bar income for the year ended 31 December 2020, owing to the nature of the Group's records, we were unable to obtain sufficient appropriate audit evidence regarding the completeness, existence and accuracy of this revenue. Consequently we were unable to determine whether any adjustment was necessary.

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 United Kingdom, including the Financial Reporting Council'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.

Material uncertainty relating to going concern
In forming our opinion on the financial statements, we have considered the adequacy of the disclosure made in note 2 in the financial statements concerning the group's ability to continue as a going concern. The Group incurred a net loss of £3,735,520 during the year ended 31 December 2020 and, at that date, the group's total liabilities exceeded its total assets by £4,758,476 and it has net current liabilities of £15,005,732.

These conditions indicate that financial support from the ultimate owner is required to enable the Group to continue trading. In addition, as the result of the global COVID-19 pandemic and the impact this has had on the UK hospitality sector, significant uncertainty over the continued viability of the trading operations of the business exist.

As stated in note 2, these events or conditions, along with the other matters as set forth in note 2, indicate the existence of a material uncertainty which may cast significant doubt about the Group's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Group was unable to continue as a going concern. Our opinion is not modified in respect of this matter, and the circumstances noted above upon which the financial statements have been qualified do not impact on the Group's ability to continue as a going concern.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
VYNETT LIMITED


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.

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 Directors' Report.

Arising solely from the limitation on the scope of our work relating to Catering and Bar revenue, described above:

- we have not obtained all the audit information and explanations that we considered necessary for the purpose of our audit; and
- we do not consider that adequate accounting records have been kept.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

- returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made.

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
VYNETT 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:

We considered the nature of the Company's industry and its control environment, and reviewed the Company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the Company operates in, and identified the key laws and regulations that:
- had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the UK Companies Act and tax legislation; and
- do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty.

We discussed among the audit engagement team including relevant internal specialists such as tax specialists regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:
- reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- enquiring of management and external legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
- reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence with HMRC.

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
VYNETT 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.




Andrew D Pearce (Senior Statutory Auditor)
for and on behalf of Bradshaw Johnson
Chartered Accountants
Statutory Auditor
Croft Chambers
11 Bancroft
Hitchin
Hertfordshire
SG5 1JQ

27 April 2023

VYNETT LIMITED (REGISTERED NUMBER: 07354439)

CONSOLIDATED
STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 DECEMBER 2020

31.12.20 31.12.19
Notes £    £    £    £   

TURNOVER 852,533 4,187,331

Cost of sales 182,485 921,100
GROSS PROFIT 670,048 3,266,231

Distribution costs 86,899 81,117
Administrative expenses 5,454,572 6,213,055
5,541,471 6,294,172
(4,871,423 ) (3,027,941 )

Other operating income 1,174,462 -
OPERATING LOSS 4 (3,696,961 ) (3,027,941 )

Interest receivable and similar income 1 -
(3,696,960 ) (3,027,941 )

Interest payable and similar expenses 6 38,560 38,004
LOSS BEFORE TAXATION (3,735,520 ) (3,065,945 )

Tax on loss 7 - (10,014 )
LOSS FOR THE FINANCIAL YEAR (3,735,520 ) (3,055,931 )

OTHER COMPREHENSIVE INCOME
Revaluation reserve 361,840 -
Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

361,840

-
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(3,373,680

)

(3,055,931

)

Loss attributable to:
Owners of the parent (3,735,520 ) (3,055,931 )

Total comprehensive income attributable to:
Owners of the parent (3,373,680 ) (3,055,931 )

VYNETT LIMITED (REGISTERED NUMBER: 07354439)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2020

31.12.20 31.12.19
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 10,255,230 10,738,748
Investments 10 - -
10,255,230 10,738,748

CURRENT ASSETS
Stocks 11 165 36,335
Debtors 12 6,749,151 7,532,785
Cash at bank and in hand 26,715 40,758
6,776,031 7,609,878
CREDITORS
Amounts falling due within one year 13 21,781,763 19,725,448
NET CURRENT LIABILITIES (15,005,732 ) (12,115,570 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(4,750,502

)

(1,376,822

)

PROVISIONS FOR LIABILITIES 15 7,974 7,974
NET LIABILITIES (4,758,476 ) (1,384,796 )

CAPITAL AND RESERVES
Called up share capital 16 100 100
Revaluation reserve 17 361,840 -
Retained earnings 17 (5,120,416 ) (1,384,896 )
SHAREHOLDERS' FUNDS (4,758,476 ) (1,384,796 )

The financial statements were approved by the Board of Directors and authorised for issue on 20 April 2023 and were signed on its behalf by:





M Z B Muda - Director


VYNETT LIMITED (REGISTERED NUMBER: 07354439)

COMPANY STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2020

31.12.20 31.12.19
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 - -
Investments 10 768,557 768,557
768,557 768,557

CURRENT ASSETS
Debtors 12 6,533,403 9,887,315
Cash at bank and in hand 13,113 1,602
6,546,516 9,888,917
CREDITORS
Amounts falling due within one year 13 12,064,394 11,966,041
NET CURRENT LIABILITIES (5,517,878 ) (2,077,124 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(4,749,321

)

(1,308,567

)

CAPITAL AND RESERVES
Called up share capital 16 100 100
Retained earnings (4,749,421 ) (1,308,667 )
SHAREHOLDERS' FUNDS (4,749,321 ) (1,308,567 )

Company's loss for the financial year (3,440,754 ) (1,048,498 )

The financial statements have been prepared 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 20 April 2023 and were signed on its behalf by:





M Z B Muda - Director


VYNETT LIMITED (REGISTERED NUMBER: 07354439)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   

Balance at 1 January 2019 2,125,360 1,671,035 - 3,796,395

Changes in equity
Issue of share capital (2,125,260 ) - - (2,125,260 )
Total comprehensive income - (3,055,931 ) - (3,055,931 )
Balance at 31 December 2019 100 (1,384,896 ) - (1,384,796 )

Changes in equity
Total comprehensive income - (3,735,520 ) 361,840 (3,373,680 )
Balance at 31 December 2020 100 (5,120,416 ) 361,840 (4,758,476 )

VYNETT LIMITED (REGISTERED NUMBER: 07354439)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 January 2019 100 (260,169 ) (260,069 )

Changes in equity
Total comprehensive income - (1,048,498 ) (1,048,498 )
Balance at 31 December 2019 100 (1,308,667 ) (1,308,567 )

Changes in equity
Total comprehensive income - (3,440,754 ) (3,440,754 )
Balance at 31 December 2020 100 (4,749,421 ) (4,749,321 )

VYNETT LIMITED (REGISTERED NUMBER: 07354439)

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020

31.12.20 31.12.19
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 97,417 265,389
Interest paid (38,560 ) (38,004 )
Net cash from operating activities 58,857 227,385

Cash flows from investing activities
Purchase of tangible fixed assets (72,171 ) (191,605 )
Interest received 1 -
Net cash from investing activities (72,170 ) (191,605 )

Cash flows from financing activities
Loan repayments in year (62,730 ) (120,000 )
Amount introduced by directors 8,700 -
Net cash from financing activities (54,030 ) (120,000 )

Decrease in cash and cash equivalents (67,343 ) (84,220 )
Cash and cash equivalents at beginning of
year

2

34,609

118,829

Cash and cash equivalents at end of year 2 (32,734 ) 34,609

VYNETT LIMITED (REGISTERED NUMBER: 07354439)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020

1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31.12.20 31.12.19
£    £   
Loss before taxation (3,735,520 ) (3,065,945 )
Depreciation charges 233,529 355,017
Amounts owed to group undertakings (40 ) (83,306 )
Amounts owed by participating interests 2,633,183 1,450,336
Amounts owed by joint ventures (11,067 ) -
Impairment of fixed assets 684,000 1,650,102
- 2,828
Finance costs 38,560 38,004
Finance income (1 ) -
(157,356 ) 347,036
Decrease in stocks 36,170 2,421
Decrease in trade and other debtors 254,672 13,869
Decrease in trade and other creditors (36,069 ) (97,937 )
Cash generated from operations 97,417 265,389

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2020
31.12.20 1.1.20
£    £   
Cash and cash equivalents 26,715 40,758
Bank overdrafts (59,449 ) (6,149 )
(32,734 ) 34,609
Year ended 31 December 2019
31.12.19 1.1.19
£    £   
Cash and cash equivalents 40,758 118,829
Bank overdrafts (6,149 ) -
34,609 118,829


VYNETT LIMITED (REGISTERED NUMBER: 07354439)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020

3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.20 Cash flow At 31.12.20
£    £    £   
Net cash
Cash at bank and in hand 40,758 (14,043 ) 26,715
Bank overdrafts (6,149 ) (53,300 ) (59,449 )
34,609 (67,343 ) (32,734 )
Debt
Debts falling due within 1 year (750,000 ) 62,730 (687,270 )
(750,000 ) 62,730 (687,270 )
Total (715,391 ) (4,613 ) (720,004 )

VYNETT LIMITED (REGISTERED NUMBER: 07354439)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020

1. STATUTORY INFORMATION

Vynett Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements have been prepared on the going concern basis which assumes that the Group will continue in operational existence for a period of at least 12 months from the date of approval of these financial statements. The Group incurred a net loss of £3,735,520 during the year ended 31 December 2020 and, at that date, the Group's total liabilities exceeded its total assets by £4,758,476 and it has net current liabilities of £15,005,732.

These conditions indicate that financial support from the ultimate owner, Mohd Muda, is required to enable the Group to continue trading. It has been confirmed that continued support for the Group will be provided for a period of at least 12 months from the approval of these financial statements through Zetro Services Sdn Bhd a Malaysian entity owned and controlled by Mohd Muda.

The Directors are of the opinion that with the continued support of their ultimate owner and controlling party, the Group can meet its liabilities as they fall due.

In addition to the above considerations around the availability of suitable financing arrangements, as the result of the global COVID-19 pandemic and the impact this has had on the UK hospitality sector, significant uncertainty over the continued viability of the trading operations of the business exist.

There can be no certainty in relation to these matters. However, the directors consider it appropriate to prepare the financial statements on the going concern basis. The financial statements do not include any adjustments that would result if the Group was unable to continue as a going concern.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Fixtures and fittings - 20% and 33% on cost
Computer equipment - 33% on cost

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.


VYNETT LIMITED (REGISTERED NUMBER: 07354439)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2020

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

3. EMPLOYEES AND DIRECTORS
31.12.20 31.12.19
£    £   
Wages and salaries 1,759,429 2,474,621
Other pension costs 30,223 37,431
1,789,652 2,512,052

The average number of employees during the year was as follows:
31.12.20 31.12.19

Employees 178 202

The average number of employees by undertakings that were proportionately consolidated during the year was 178 (2019 - 202 ) .

31.12.20 31.12.19
£    £   
Directors' remuneration 80,818 80,868

VYNETT LIMITED (REGISTERED NUMBER: 07354439)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2020

4. OPERATING LOSS

The operating loss is stated after charging:

31.12.20 31.12.19
£    £   
Hire of plant and machinery 86,899 81,117
Depreciation - owned assets 233,529 355,017
Auditors' remuneration 28,000 58,572

5. EXCEPTIONAL ITEMS
31.12.20 31.12.19
£    £   
Exceptional items (1,898,520 ) -

Tracktek Industries Limited, a Company under common control, was dissolved on 5 July 2022, the balance owed to the Group at 31 December 2020 has therefore been written off.

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.20 31.12.19
£    £   
Bank interest 10,640 4,979
Bank loan interest 27,920 32,803
Interest payable - 222
38,560 38,004

7. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
31.12.20 31.12.19
£    £   
Deferred tax - (10,014 )
Tax on loss - (10,014 )

Tax effects relating to effects of other comprehensive income

31.12.20
Gross Tax Net
£    £    £   
Revaluation reserve 361,840 - 361,840

8. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

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.


VYNETT LIMITED (REGISTERED NUMBER: 07354439)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2020

9. TANGIBLE FIXED ASSETS

Group
Fixtures
Freehold Long and Computer
property leasehold fittings equipment Totals
£    £    £    £    £   
COST OR VALUATION
At 1 January 2020 6,267,395 8,659,697 2,457,189 8,099 17,392,380
Additions 1,625 59,947 8,138 2,461 72,171
Revaluations (45,860 ) - - - (45,860 )
At 31 December 2020 6,223,160 8,719,644 2,465,327 10,560 17,418,691
DEPRECIATION
At 1 January 2020 1,437,495 2,859,697 2,352,154 4,286 6,653,632
Charge for year 54,845 112,346 64,086 2,252 233,529
Revaluation adjustments (109,451 ) - - - (109,451 )
Impairments 4,000 680,000 - - 684,000
Reversal of impairments (298,249 ) - - - (298,249 )
At 31 December 2020 1,088,640 3,652,043 2,416,240 6,538 7,163,461
NET BOOK VALUE
At 31 December 2020 5,134,520 5,067,601 49,087 4,022 10,255,230
At 31 December 2019 4,829,900 5,800,000 105,035 3,813 10,738,748

Cost or valuation at 31 December 2020 is represented by:

Fixtures
Freehold Long and Computer
property leasehold fittings equipment Totals
£    £    £    £    £   
Valuation in 2020 (45,860 ) - - - (45,860 )
Cost 6,269,020 8,719,644 2,465,327 10,560 17,464,551
6,223,160 8,719,644 2,465,327 10,560 17,418,691

VYNETT LIMITED (REGISTERED NUMBER: 07354439)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2020

10. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2020
and 31 December 2020 1,810,001
PROVISIONS
At 1 January 2020
and 31 December 2020 1,041,444
NET BOOK VALUE
At 31 December 2020 768,557
At 31 December 2019 768,557


11. STOCKS

Group
31.12.20 31.12.19
£    £   
Stocks 165 36,335

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.12.20 31.12.19 31.12.20 31.12.19
£    £    £    £   
Trade debtors 61,104 208,329 - -
Amounts owed by group undertakings 6,532,050 6,486,881 6,532,010 6,486,881
Amounts owed by participating interests - 576,498 - 3,399,041
Amounts owed by joint ventures 105,526 94,459 - -
Other debtors 3,045 25,200 - -
Directors' current accounts - 8,700 - -
VAT - - 1,393 1,393
Prepayments and accrued income 47,426 132,718 - -
6,749,151 7,532,785 6,533,403 9,887,315

VYNETT LIMITED (REGISTERED NUMBER: 07354439)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2020

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.12.20 31.12.19 31.12.20 31.12.19
£    £    £    £   
Bank loans and overdrafts (see note 14) 746,719 756,149 - -
Trade creditors 792,045 683,413 108 108
Amounts owed to group undertakings 6,532,010 6,486,881 1,199,194 1,116,216
Amounts owed to participating interests 2,219,675 162,990 22,187 9,862
Social security and other taxes 272,381 126,406 - -
VAT 34,573 120,648 - -
Other creditors 164,459 164,737 - -
Directors' current accounts 10,832,948 10,832,948 10,832,948 10,832,948
Accruals and deferred income 186,953 391,276 9,957 6,907
21,781,763 19,725,448 12,064,394 11,966,041

14. LOANS

An analysis of the maturity of loans is given below:

Group
31.12.20 31.12.19
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 59,449 6,149
Bank loans 687,270 750,000
746,719 756,149

15. PROVISIONS FOR LIABILITIES

Group
31.12.20 31.12.19
£    £   
Deferred tax 7,974 7,974

Group
Deferred
tax
£   
Balance at 1 January 2020 7,974
Balance at 31 December 2020 7,974

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.20 31.12.19
value: £    £   
100 Ordinary £1 100 100

VYNETT LIMITED (REGISTERED NUMBER: 07354439)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2020

17. RESERVES

Group
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 January 2020 (1,384,896 ) - (1,384,896 )
Deficit for the year (3,735,520 ) - (3,735,520 )
Gain / loss on revaluation - 361,840 361,840
At 31 December 2020 (5,120,416 ) 361,840 (4,758,576 )