REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Year Ended 31 August 2023 |
for |
OTIUM SERVICES AND FACILITIES LIMITED |
REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Year Ended 31 August 2023 |
for |
OTIUM SERVICES AND FACILITIES LIMITED |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Contents of the Financial Statements |
FOR THE YEAR ENDED 31 AUGUST 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Directors' Responsibilities Statement | 6 |
Report of the Independent Auditors | 7 |
Income Statement | 11 |
Other Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Cash Flow Statement | 15 |
Notes to the Cash Flow Statement | 16 |
Notes to the Financial Statements | 18 |
OTIUM SERVICES AND FACILITIES LIMITED |
Company Information |
FOR THE YEAR ENDED 31 AUGUST 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Certified Accountants |
And Statutory Auditors |
7 Marconi Gate |
Stafford |
ST18 0FZ |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Strategic Report |
FOR THE YEAR ENDED 31 AUGUST 2023 |
The directors present their strategic report for the year ended 31 August 2023. |
REVIEW OF BUSINESS |
The results for the year and the financial position of company are shown in the annexed financial statements. The principal activity of the company continues to be commercial contract cleaning throughout the United Kingdom. Most of our contracts continue to be concentrated in our core area of expertise, which is gyms, and nurseries, with a particular focus on the national chains. In addition the company has acquired the trade of a cleaning business within the entertainment sector focused on pubs, clubs & bars. We do have some smaller clients outside of our main focus areas however these represent an insignificant part of the overall revenue for the financial year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Customer and credit risk |
The company supplies a range of markets and customers in order to avoid reliance on a single customer and the associated risks. The company uses credit insurance with agreed credit limits to minimise its exposure to credit risk. |
Supplier and product risk |
The company uses a relatively small number of suppliers in order to maintain a reliable supply of products in the quantities required. There are a large number of suppliers available to minimise the risk of product supply. |
Liquidity risk |
The company forecasts its future cash flows on a daily basis and ensures it has sufficient reserves and facilities to meet all its obligations. The business finances its operations through a mixture of existing working capital, secured bank borrowings and against trade debtors and directors loans. |
Interest rate risk |
The company maintains close relationships with its bankers and finance providers in order to ensure the interest rate risk is managed effectively. |
EMPLOYEES |
The company has continued to give full and fair consideration to applications made by persons of all diversities, having regard to their respective aptitudes and abilities, and to ensure that they benefit from training and career development programmes in common with all employees. The company has continued its policy of employee involvement by making information available to employees through the medium of frequent staff meetings, together with personal appraisals and feedback sessions. |
PAYMENT OF CREDITORS |
The company does not follow any published code or statement on payment practice. However, it is the company's policy to settle all amounts due to its creditors on a timely basis, taking into account the credit terms by each supplier. |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Strategic Report |
FOR THE YEAR ENDED 31 AUGUST 2023 |
LIKELY FUTURE DEVELOPMENTS |
Otium Services and Facilities has now recovered from the effects of the COVID-19 pandemic, which had a dramatic affect on this industry. |
The turnover for the period is a result of the end of two contracts, however with the trade acquisition made within this year the directors expect to start trending back to previous year turnovers. |
During the period the company has increased its gross profit margin by improving performance. |
The company continues to look for more customers and is expanding outside of its core market to reduce future risk. |
With the company's expanse into medical area cleaning, day nursery cleaning and other educational sites it feels more protected from any future lockdown scenarios. |
The new chairman and director of operations have now had time to implement the changes that were required and have seen dramatic increases in performance. The new finance director and accounts director have now taken full control of the finance team and have implemented their required changes, which both of these changes have driven the company forward in these areas. |
KEY PERFORMANCE INDICATORS |
At Otium Facilities and Services we recognise that we can only deliver excellent standards of service to our clients by having a successful, sustainable and dynamic company. |
To enable this, we use two Key Performance Indicators; Revenue and Net Profit. Both of these KPI's have been achieved. |
Turnover has reduced by 57% from £28,770,975 (extended period) to £12,298,298 in line with expectations of the loss of two contracts. On a pro rata basis this is a reduction of 39%. |
We are exceptionally proud of our commercial performance, especially when combined with our excellent front line services levels. |
AUDITORS |
Lawton Bradford Accountants Limited |
ON BEHALF OF THE BOARD: |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Report of the Directors |
FOR THE YEAR ENDED 31 AUGUST 2023 |
The directors present their report with the financial statements of the company for the year ended 31 August 2023. |
DIVIDENDS |
No dividends will be distributed for the year to 31 August 2023 (2022: £0 dividends were voted). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 September 2022 to the date of this report. |
RESULTS REVIEW |
The company's key performance numbers within the year were (17 month period to 2022): |
Year | 2023 | 2022 |
Turnover | 12,298,298 | 28,770,975 |
Gross Profit | 1,856,360 | 3,867,393 |
Net Assets | 514,353 | 311,221 |
The company aims to continue to grow its client base organically, while expanding into additional target areas. |
The company has the structure in place and operational scope to grow in these target areas. |
ENGAGEMENT WITH EMPLOYEES |
The Company operates a framework for employee information and consultation which complies with the requirements of the Information and Consultation of Employees Regulations 2004. During the year, the policy of providing employees with information about the company has continued through the Company's website and interactive employee applications. Regular meetings are held between local management and employees to allow free flow of information and ideas. Employees participate directly in the success of the business through bonus mechanisms. |
DISABLED EMPLOYEES |
The Company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Opportunities are available to disabled employees for training, career development and promotion. Where existing employees become disabled, it is the Company's policy to provide continuing employment wherever practicable in the same or and alternative position and to provide appropriate training to achieve this aim. |
STREAMLINED ENERGY AND CARBON REPORTING |
The Company is subject to report greenhouse gas (""GHG") emissions and energy usage in the Directors' Report in line with the Companies (Directors' Report) and the Limited Liability Partnerships (Energy and Carbon) Regulations 2018. |
Methodology |
The Company is committed to specific environmental-based targets, including using sustainable paper products, electric vehicles and efficient route planning. All of these creating a reducing carbon emissions over the next five years. |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Report of the Directors |
FOR THE YEAR ENDED 31 AUGUST 2023 |
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 company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Lawton Bradford Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Directors' Responsibilities Statement |
FOR THE YEAR ENDED 31 AUGUST 2023 |
The directors are responsible for preparing the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare the financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with Financial Reporting Standards 102 as adopted for use in the UK and Republic of Ireland. The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that year. In preparing these financial statements, the directors are required to |
- select suitable accounting policies and then apply them consistently; |
- make judgements and 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 which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
The directors are responsible for the maintenance and integrity of corporate and financial information on the company's website. |
Report of the Independent Auditors to the Members of |
Otium Services And Facilities Limited |
Opinion |
We have audited the financial statements of Otium Services And Facilities Limited (the 'company') for the year ended 31 August 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 August 2023 and of its profit 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 opinion |
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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'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. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
The directors review the on going working capital of the company to that there are sufficient reserves to meet its financial liabilities to continue trading in the foreseeable future. On this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis. |
Report of the Independent Auditors to the Members of |
Otium Services And Facilities Limited |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report, the Report of the Directors and the Directors' Responsibilities Statement, 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. |
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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or 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; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement set out on page six, 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 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 company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Otium Services And Facilities 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 obtain an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework; |
We obtain an understanding of the entity’s policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance. |
Identify which laws and regulations are of significance in the context of the entity; |
We obtain an understanding of the entity’s risk assessment process, including the risk of fraud; |
We assess the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur; |
Identify and test unusual or unexpected journal entries; |
Use Data Analytics to review the client data for unusual trends/anomalies; |
Evaluate the assumptions and judgements used by management within significant accounting estimates and assess if these indicate evidence of management bias; |
Test significant transactions, in particular evaluate the business rationale for any which appear unusual or outside the company’s normal course of business; |
Review the financial statements and test the disclosures against supporting documentation; |
Communicate relevant matters (including those above) to all members of the audit team to ensure they understood the risks specific to the entity and the audit procedures planned to mitigate these. |
In order to ascertain the above and relative to the specific risks identified, the procedures followed included: |
Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims; |
Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; |
Review of financial statement disclosures and test to supporting documentation to assess compliance with applicable laws and regulations. |
Perform audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
Report of the Independent Auditors to the Members of |
Otium Services And Facilities Limited |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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. |
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. |
for and on behalf of |
Chartered Certified Accountants |
And Statutory Auditors |
7 Marconi Gate |
Stafford |
ST18 0FZ |
Lawton Bradford Accountants Limited, Chartered Accountants and Statuatory |
Auditors |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Income Statement |
FOR THE YEAR ENDED 31 AUGUST 2023 |
Period |
1/4/21 |
Year ended | to |
31/8/23 | 31/8/22 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
335,219 | 415,613 |
Other operating income |
OPERATING PROFIT | 5 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Other Comprehensive Income |
FOR THE YEAR ENDED 31 AUGUST 2023 |
Period |
1/4/21 |
Year ended | to |
31/8/23 | 31/8/22 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Balance Sheet |
31 AUGUST 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 | 1,350 | 1,350 |
Share premium | 19 | 249,650 | 249,650 |
Retained earnings | 19 | 263,353 | 60,221 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Statement of Changes in Equity |
FOR THE YEAR ENDED 31 AUGUST 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 | 1,350 | (620,317 | ) | 249,650 | (369,317 | ) |
Changes in equity |
Total comprehensive income | - | 680,538 | - | 680,538 |
Balance at 31 August 2022 | 1,350 | 60,221 | 249,650 | 311,221 |
Changes in equity |
Total comprehensive income | - | 203,132 | - | 203,132 |
Balance at 31 August 2023 | 1,350 | 263,353 | 249,650 | 514,353 |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Cash Flow Statement |
FOR THE YEAR ENDED 31 AUGUST 2023 |
Period |
1/4/21 |
Year ended | to |
31/8/23 | 31/8/22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Additional lending |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Grants received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
New loans in year |
Amount introduced by directors | 190,440 | - |
Amount withdrawn by directors | (190,440 | ) | (190,440 | ) |
Net cash from financing activities | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
126,833 |
Cash and cash equivalents at end of year |
2 |
116,055 |
671,053 |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Notes to the Cash Flow Statement |
FOR THE YEAR ENDED 31 AUGUST 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1/4/21 |
Year ended | to |
31/8/23 | 31/8/22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Government grants | ( |
) |
Finance costs | 30,781 | 44,861 |
511,837 | 501,499 |
Decrease/(increase) in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 August 2023 |
31/8/23 | 1/9/22 |
£ | £ |
Cash and cash equivalents | 116,055 | 671,053 |
Period ended 31 August 2022 |
31/8/22 | 1/4/21 |
£ | £ |
Cash and cash equivalents | 671,053 | 126,833 |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Notes to the Cash Flow Statement |
FOR THE YEAR ENDED 31 AUGUST 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1/9/22 | Cash flow | At 31/8/23 |
£ | £ | £ |
Net cash |
Cash at bank | 671,053 | (554,998 | ) | 116,055 |
671,053 | ( |
) | 116,055 |
Debt |
Debts falling due within 1 year | (100,000 | ) | - | (100,000 | ) |
Debts falling due after 1 year | (400,000 | ) | (127,784 | ) | (527,784 | ) |
(500,000 | ) | (127,784 | ) | (627,784 | ) |
Total | 171,053 | (682,782 | ) | (511,729 | ) |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Notes to the Financial Statements |
FOR THE YEAR ENDED 31 AUGUST 2023 |
1. | STATUTORY INFORMATION |
Otium Services and Facilities Ltd is a private company, limited by shares, registered in England and Wales. |
Registered Office: |
Unit C2A Comet Studios |
De Havilland Court, Penn Street |
Amersham |
Buckinghamshire |
HP7 0PX |
Registered number: 09260561 |
Head Office: |
Unit C2A Comet Studios |
De Havilland Court, Penn Street |
Amersham |
Buckinghamshire |
HP7 0PX |
The presentation currency of the financial statements is the Pound Sterling (£) |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 ("FRS 102"), the financial reporting standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006. |
Judgements in applying accounting policies and key sources of uncertainty |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies. |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales. |
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. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
In determining estimated residual values and depreciation rates on vehicles, management considers many factors, including used car market conditions, anticipated holding periods, fleet mix, buyback guarantees and historic experience. Management regularly monitors residual values and the need, if any, to adjust depreciation rates. |
The annual depreciation and amortisation charge on tangible fixed assets, goodwill and tangible assets are sensitive to changes in the estimated useful economic lives and residual values of assets. The useful economic lives and residual values of the assets are amended when necessary to reflect current estimates. |
Depreciation is provided on the following basis: |
- Plant and machinery - 1 - 3 years of usage |
- Motor vehicles - 3 years of ownership |
- Fixtures and fittings - 3 years of ownership |
- Office equipment - 1 - 3 years of ownership |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
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. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
2. | ACCOUNTING POLICIES - continued |
Cash and cash equivalents |
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. |
In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management. |
Going concern |
The directors review the on going working capital of the company to ensure that there are sufficient reserves to meet its financial liabilities to continue trading in the foreseeable future. On this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
Period |
1/4/21 |
Year ended | to |
31/8/23 | 31/8/22 |
£ | £ |
An analysis of turnover by geographical market is given below: |
Period |
1/4/21 |
Year ended | to |
31/8/23 | 31/8/22 |
£ | £ |
United Kingdom |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
4. | EMPLOYEES AND DIRECTORS |
Period |
1/4/21 |
Year ended | to |
31/8/23 | 31/8/22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
Period |
1/4/21 |
Year ended | to |
31/8/23 | 31/8/22 |
Management | 23 | 40 |
Operations | 946 | 1,361 |
Period |
1/4/21 |
Year ended | to |
31/8/23 | 31/8/22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
Period |
1/4/21 |
Year ended | to |
31/8/23 | 31/8/22 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Goodwill amortisation |
Auditors' remuneration |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1/4/21 |
Year ended | to |
31/8/23 | 31/8/22 |
£ | £ |
Bank interest |
Invoice finance costs |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
Period |
1/4/21 |
Year ended | to |
31/8/23 | 31/8/22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1/4/21 |
Year ended | to |
31/8/23 | 31/8/22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Utilisation of tax losses | ( |
) |
Research and development enhanced expenditure | - | ( |
) |
Marginal rate relief | ( |
) | - |
Total tax charge | 101,306 | 8,571 |
8. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
Additions |
At 31 August 2023 |
AMORTISATION |
Amortisation for year |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
Goodwill represents the amount paid in connection with the aquisition of the trade and assets of a company on 1st May 2023 |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 September 2022 |
Additions |
At 31 August 2023 |
DEPRECIATION |
At 1 September 2022 |
Charge for year |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
10. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Directors' current accounts | 190,440 | 190,440 |
Tax |
Prepayments and accrued income |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 829,826 | 1,507,402 |
Other creditors |
Accruals and deferred income |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 14) |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
15. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
Invoice financing | 885,297 | 1,104,093 |
These loans are secured by way of a fixed and floating charge over the assets of the company. |
The CBIL's loan is repayable by monthly instalments ending July 2027, the interest rate is 3.99% over the Bank Of England base rate. |
The additional bank loans repayable by monthly instalments ending August 2028, the interest rate is 15% over the Bank Of England base rate. |
17. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1 September 2022 |
Provided during year |
Balance at 31 August 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 1,350 | 1,350 |
OTIUM SERVICES AND FACILITIES LIMITED (REGISTERED NUMBER: 09260561) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
19. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 September 2022 | 60,221 | 249,650 | 309,871 |
Profit for the year | 203,132 | 203,132 |
At 31 August 2023 | 263,353 | 249,650 | 513,003 |
20. | PENSION COMMITMENTS |
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 charge represents contributions payable by the company and amounted to £195,653 (2022 - £221,533). Contributions totalling £22,129 were payable at the year end and are included in creditors. |
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the year ended 31 August 2023 and the period ended 31 August 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
The Directors remuneration of £62,096 represents total remuneration paid to key management personel. |
22. | RELATED PARTY DISCLOSURES |
During the year management fees totalling was outstanding at the year end. |
23. | ULTIMATE CONTROLLING PARTY |