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COMPANY REGISTRATION NUMBER: 12252528
Affco Flow Control (UK) Limited
Filleted Unaudited Financial Statements
31 October 2023
Affco Flow Control (UK) Limited
Statement of Financial Position
31 October 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
5
94,135
77,685
Current assets
Stocks
336,168
256,432
Debtors
6
590,749
532,541
Cash at bank and in hand
447,275
66,060
------------
---------
1,374,192
855,033
Creditors: amounts falling due within one year
7
1,223,550
901,019
------------
---------
Net current assets/(liabilities)
150,642
( 45,986)
---------
--------
Total assets less current liabilities
244,777
31,699
Creditors: amounts falling due after more than one year
8
47,014
316,661
---------
---------
Net assets/(liabilities)
197,763
( 284,962)
---------
---------
Capital and reserves
Called up share capital
300,000
100
Profit and loss account
( 102,237)
( 285,062)
---------
---------
Shareholders funds/(deficit)
197,763
( 284,962)
---------
---------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
For the year ending 31 October 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
Affco Flow Control (UK) Limited
Statement of Financial Position (continued)
31 October 2023
These financial statements were approved by the board of directors and authorised for issue on 8 March 2024 , and are signed on behalf of the board by:
DJ Warner
Director
Company registration number: 12252528
Affco Flow Control (UK) Limited
Notes to the Financial Statements
Year ended 31 October 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit 7, Stafford Park 12, Telford, Shropshire, TF3 3BJ.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
(a) Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
(b) Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
(c) Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
(d) Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
(e) Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
(f) Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Leasehold property improvement
-
20% straight line
Plant and machinery
-
25% straight line
Fixtures and fittings
-
20% straight line
Motor vehicles
-
20% straight line
Computer equipment
-
33% straight line
(g) Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
(h) Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
(i) Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
(j) Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 4 (2022: 4 ).
5. Tangible assets
Leasehold improvements
Plant and machinery
Fixtures and fittings
Motor vehicles
Equipment
Total
£
£
£
£
£
£
Cost
At 1 November 2022
33,340
60,667
12,401
16,250
4,223
126,881
Additions
11,250
39,833
51,083
Disposals
( 16,250)
( 16,250)
--------
--------
--------
--------
-------
---------
At 31 October 2023
44,590
60,667
12,401
39,833
4,223
161,714
--------
--------
--------
--------
-------
---------
Depreciation
At 1 November 2022
17,630
14,459
5,787
7,583
3,737
49,196
Charge for the year
10,345
7,344
2,480
6,124
486
26,779
Disposals
( 8,396)
( 8,396)
--------
--------
--------
--------
-------
---------
At 31 October 2023
27,975
21,803
8,267
5,311
4,223
67,579
--------
--------
--------
--------
-------
---------
Carrying amount
At 31 October 2023
16,615
38,864
4,134
34,522
94,135
--------
--------
--------
--------
-------
---------
At 31 October 2022
15,710
46,208
6,614
8,667
486
77,685
--------
--------
--------
--------
-------
---------
6. Debtors
2023
2022
£
£
Trade debtors
349,352
147,922
Prepayments and accrued income
186,372
351,882
Directors loan account
9,941
5,200
Corporation tax recoverable
7,298
16,707
Other debtors
37,786
10,830
---------
---------
590,749
532,541
---------
---------
Included in prepayments and accrued income is stock in transit totalling £147,155 (2022 - £327,050). Other debtors includes £26,956 (2022 - £nil) relating to a loan to an associated company; Affco Flow Control Europe B.V.
7. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
10,102
9,853
Other loans
192,600
Trade creditors
880,529
794,174
Accruals and deferred income
11,042
17,897
Social security and other taxes
67,226
24,038
Obligations under finance leases and hire purchase contracts
5,204
2,883
Other creditors
56,847
52,174
------------
---------
1,223,550
901,019
------------
---------
Included in trade creditors is £562,119 (2022 - £480,755) due to Affco Flow Control (Shanghai) Co. Ltd. Included in creditors is £5,204 (2022 - £2,883) in respect of hire purchase and finance lease liabilities which are secured on the assets of the company. Other creditors includes £54,274 (2022 - £47,668) relating to loans from an associated company; Affco Flow Control (Shanghai) Co. Ltd. In the prior year, other creditors also included loans from Affco Flow Control Singapore Limited.
8. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
16,514
26,612
Obligations under finance leases and hire purchase contracts
27,065
6,086
Loans from associated companies
3,435
283,963
--------
---------
47,014
316,661
--------
---------
The bank loan is repayable in instalments over a period of 5 years starting 13 months after the date of the drawdown. The loan incurs interest at a fixed rate of 2.5% payable on the outstanding principal amount.
Included in creditors is £27,065 (2022 - £6,086) in respect of hire purchase and finance lease liabilities which are secured on the assets of the company. Other creditors relates to loans from an associated company; Affco Flow Control (Shanghai) Co. Ltd. In the prior year, other creditors also included loans from Affco Flow Control Singapore Limited.
9. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
52,956
52,956
Later than 1 year and not later than 5 years
49,080
102,037
---------
---------
102,036
154,993
---------
---------
10. Directors' advances, credits and guarantees
During 2021 a loan of £5,000 was made to DJ Warner . This balance remains outstanding at the year end. During the year a further loan of £5,689 was made to DJ Warner in respect of a cycle to work scheme arrangement. As at 31 October 2023 £4,741 of this loan remained outstanding.
11. Controlling party
On 5 June 2023, Affco Flow Control PTE LTD, a company registered in Singapore, subscribed for 299,900 ordinary shares of £1 each, payment of which was satisfied by the cancellation of intercompany loans of an equal amount. Since that date the company is a subsidiary undertaking of Affco Flow Control PTE LTD , who are the company's ultimate controlling party. In accordance with section 33.1A of FRS 102 the company has taken the exemption from disclosing transactions and balances with its parent company and other wholly owned members of the group.
12. Going concern
The company made a profit for the year but at 31 October 2023 had negative profit and loss reserves amounting to £102,237.
The company is associated with an Affco Flow Control company in Shanghai by virtue of common control, and is now a subsidiary undertaking of Affco Flow Control PTE Ltd. These companies have together provided loans to Affco Flow Control (UK) Limited of which the balances outstanding at 31 October 2023 were £57,709 (2022 - £331,631).
As a result of the issue of shares during the year, the intercompany loan brought forward from Affco Singapore was eliminated and the company now has positive net assets.
Given the level of support demonstrated by the Affco group the directors are satisfied that the company can continue as a going concern for the foreseeable future.
13. Charge on assets
During the prior year the company registered a fixed and floating charge over the company's current and future assets as a continuing security for payment of liabilities owed to Davenham Trade Solutions Limited.