Company registration number 10397084 (England and Wales)
AI LONDON LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
AI LONDON LIMITED
CONTENTS
Page
Balance sheet
2 - 3
Statement of changes in equity
4
Notes to the financial statements
5 - 9
AI LONDON LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of manufacturing and installation of high quality bespoke furniture for the UK house building market.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D Francis
C Francis
Review of business

2023 saw AI London Limited achieve significant growth in turnover and ended the year with the strongest order book to date. This firm commercial foundation will provide a platform for stability going into 2024.

 

Despite substantial growth in the turnover for the year the continued difficulties in the industry caused by external factors, particularly the increasing cost of raw materials and energy, remain an ongoing issue. As a result of the challenges faced the Directors have implemented a number of cost reducing incentives that will start to come into effect in the coming year.

 

The Directors continue to have confidence and be committed to the business; this is reinforced by the write off of a portion of the shareholder loan which further demonstrates the Directors' belief in the trajectory of the company.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
C Francis
Director
21 August 2024
AI LONDON LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
98,644
111,242
Current assets
Stocks and work in progress
321,931
395,945
Debtors
5
1,428,137
1,079,408
Cash at bank and in hand
149,157
163,806
1,899,225
1,639,159
Creditors: amounts falling due within one year
6
(1,227,858)
(1,231,736)
Net current assets
671,367
407,423
Total assets less current liabilities
770,011
518,665
Creditors: amounts falling due after more than one year
7
(1,274,822)
(1,027,599)
Net liabilities
(504,811)
(508,934)
Capital and reserves
Called up share capital
108
108
Share premium account
242,440
242,440
Profit and loss reserves
(747,359)
(751,482)
Total equity
(504,811)
(508,934)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

AI LONDON LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 21 August 2024 and are signed on its behalf by:
C Francis
Director
Company Registration No. 10397084
AI LONDON LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
108
242,440
(365,268)
(122,720)
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(386,214)
(386,214)
Balance at 31 December 2022
108
242,440
(751,482)
(508,934)
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
4,123
4,123
Balance at 31 December 2023
108
242,440
(747,359)
(504,811)
AI LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
1
Accounting policies
Company information

AI London Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 4B, Wheatstone Close, Manor Royal, Crawley, West Sussex, United Kingdom, RH10 9UA.

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

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
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.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover for the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the value of works completed to date against the estimated total value of works. When the outcome of a contract cannot be estimated reliably, turnover is only recognised to the extent of recoverable expenses.

Other income

Other income includes research and development tax credit.

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:

Leasehold land and buildings
20% straight line
Plant and equipment
20% straight line
Fixtures and fittings
20% straight line
Computers
20% straight line
AI LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -

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.

1.5
Stocks

Stock represents raw materials held at the company's factory premises.

 

Work in progress represents goods held at the company's factory premises, and that which is off-site which has not been invoiced or had an application for payment made under a contract for services.

 

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is calculated using the first-in, first-out method and includes all purchase, transport and handling costs in bringing stocks to their present location and condition.

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.

1.6
Cash at bank and in hand

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.

1.7
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.

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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

1.8
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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

AI LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
1.9
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
46
42
AI LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
84,451
464,061
548,512
Additions
-
0
30,719
30,719
At 31 December 2023
84,451
494,780
579,231
Depreciation and impairment
At 1 January 2023
48,953
388,317
437,270
Depreciation charged in the year
11,802
31,515
43,317
At 31 December 2023
60,755
419,832
480,587
Carrying amount
At 31 December 2023
23,696
74,948
98,644
At 31 December 2022
35,498
75,744
111,242
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
492,584
221,698
Corporation tax recoverable
65,160
63,180
Other debtors
870,393
794,530
1,428,137
1,079,408
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
50,000
50,000
Trade creditors
833,874
811,212
Taxation and social security
233,943
307,559
Other creditors
110,041
62,965
1,227,858
1,231,736
AI LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
87,501
146,423
Other creditors
1,187,321
881,176
1,274,822
1,027,599

The long-term bank loan totals £87,501 (2022: £146,423) representing the non-current element of a CBILS loan, secured by way of fixed and floating charges over the undertaking and all property. The CBILS term is 6 years with an interest rate of 3.99% + base applicable from the 13th month.

Included within other creditors due after more than one year is a shareholder loan of £1,187,321 (2022: £881,176), which includes accrued interest at a deemed market rate up to 31 December 2019. The shareholders have formally agreed that further interest is not being charged until the company has sustained trading profits, excluding loan write offs. It is secured by way of floating charges over the undertaking and all property, as second charge.

8
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:

2023
2022
£
£
208,395
208,395
2023-12-312023-01-01false21 August 2024CCH SoftwareCCH Accounts Production 2024.100D FrancisC Francisfalsefalse103970842023-01-012023-12-3110397084bus:Director12023-01-012023-12-3110397084bus:Director22023-01-012023-12-31103970842023-12-31103970842022-12-3110397084core:LandBuildings2023-12-3110397084core:OtherPropertyPlantEquipment2023-12-3110397084core:LandBuildings2022-12-3110397084core:OtherPropertyPlantEquipment2022-12-3110397084core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3110397084core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3110397084core:CurrentFinancialInstruments2023-12-3110397084core:CurrentFinancialInstruments2022-12-3110397084core:Non-currentFinancialInstruments2023-12-3110397084core:Non-currentFinancialInstruments2022-12-3110397084core:ShareCapital2023-12-3110397084core:ShareCapital2022-12-3110397084core:SharePremium2023-12-3110397084core:SharePremium2022-12-3110397084core:RetainedEarningsAccumulatedLosses2023-12-3110397084core:RetainedEarningsAccumulatedLosses2022-12-3110397084core:ShareCapital2021-12-3110397084core:SharePremium2021-12-3110397084core:RetainedEarningsAccumulatedLosses2021-12-3110397084core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31103970842022-01-012022-12-3110397084core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3110397084core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3110397084core:PlantMachinery2023-01-012023-12-3110397084core:FurnitureFittings2023-01-012023-12-3110397084core:ComputerEquipment2023-01-012023-12-3110397084core:LandBuildings2022-12-3110397084core:OtherPropertyPlantEquipment2022-12-31103970842022-12-3110397084core:LandBuildings2023-01-012023-12-3110397084core:OtherPropertyPlantEquipment2023-01-012023-12-3110397084core:WithinOneYear2023-12-3110397084core:WithinOneYear2022-12-3110397084bus:PrivateLimitedCompanyLtd2023-01-012023-12-3110397084bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3110397084bus:FRS1022023-01-012023-12-3110397084bus:AuditExemptWithAccountantsReport2023-01-012023-12-3110397084bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP