Company registration number 00512745 (England and Wales)
Associated Credits Limited
Unaudited financial statements
For the year ended 31 December 2023
Associated Credits Limited
Contents
Page
Statement of comprehensive income
Statement of financial position
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 10
Associated Credits Limited
Statement of financial position
As at 31 December 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,005
1,182
Investments
5
296,864
296,864
297,869
298,046
Current assets
Debtors
8
4,194,232
4,304,823
Cash at bank and in hand
216,456
1,516,814
4,410,688
5,821,637
Creditors: amounts falling due within one year
9
(1,127,836)
(2,278,243)
Net current assets
3,282,852
3,543,394
Total assets less current liabilities
3,580,721
3,841,440
Creditors: amounts falling due after more than one year
10
(1,147,002)
(1,478,736)
Provisions for liabilities
Deferred tax liability
11
180,006
166,586
(180,006)
(166,586)
Net assets
2,253,713
2,196,118
Capital and reserves
Called up share capital
12
250,000
250,000
Profit and loss reserves
2,003,713
1,946,118
Total equity
2,253,713
2,196,118
The directors of the company have elected not to include a copy of the income statement 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.
Associated Credits Limited
Statement of financial position (continued)
As at 31 December 2023
31 December 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 17 September 2024 and are signed on its behalf by:
Mr M A Whiting
Director
Company registration number 00512745 (England and Wales)
Associated Credits Limited
Statement of changes in equity
For the year ended 31 December 2023
- 3 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
250,000
1,878,045
2,128,045
Year ended 31 December 2022:
Profit and total comprehensive income
-
68,073
68,073
Balance at 31 December 2022
250,000
1,946,118
2,196,118
Year ended 31 December 2023:
Profit and total comprehensive income
-
57,595
57,595
Balance at 31 December 2023
250,000
2,003,713
2,253,713
Associated Credits Limited
Notes to the financial statements
For the year ended 31 December 2023
- 4 -
1
Accounting policies
Company information
Associated Credits Limited is a private company limited by shares incorporated in England and Wales. The registered office is Lancaster House, Blackburn Street, Radcliffe, Manchester, Greater Manchester, M26 2JW.
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.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. 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 represents finance charges less refunds before deducting depreciation of leased equipment. Net income is apportioned on an approximation to the actuarial basis over the period of each finance agreement.
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:
Plant and equipment
15% on reducing balance
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
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
Associated Credits Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 5 -
1.6
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies, 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Associated Credits Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 6 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
Leases
Amounts due from lessees under finance leases are recognised as receivables at the amount of the company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the company’s net investment outstanding in respect of leases.
1.9
Depreciation of leased equipment
Depreciation of leased equipment is charged on an actuarial basis being the difference between rental income and leasing charges attributable to the year.
1.10
Preparation of consolidated financial statements
The financial statements contain information about Associated Credits Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.
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.
Allowance for doubtful debts
The company makes allowance for doubtful debts based on an assessment of the recoverability of trade debtors. Allowances are applied to trade debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable.
Associated Credits Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 7 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
2
2
4
Tangible fixed assets
Plant and equipment
£
Cost
At 1 January 2023 and 31 December 2023
3,000
Depreciation and impairment
At 1 January 2023
1,818
Depreciation charged in the year
177
At 31 December 2023
1,995
Carrying amount
At 31 December 2023
1,005
At 31 December 2022
1,182
5
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
6
196,864
196,864
Investments in other participating interests
7
100,000
100,000
296,864
296,864
6
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Control Fleet Maintenance Limited
Lancaster House, M26 2JW
Dormant
Ordinary
100.00
Associated Credits Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 8 -
7
Interest in other participating interests
Details of the company's interest in other participating interests at 31 December 2023 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Wrenwood Group Finance Limited
Lancaster House, M26 2JW
Dormant
Ordinary
26.00
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by undertakings in which the company & directors have a participating interest
260,222
Finance leases receivable
1,849,168
1,841,278
Other debtors
24,286
69,996
Prepayments and accrued income
190
183
2,133,866
1,911,457
2023
2022
Amounts falling due after more than one year:
£
£
Finance leases receivable
2,060,366
2,393,366
Total debtors
4,194,232
4,304,823
9
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors (secured)
624,382
784,519
Amounts owed to undertakings in which the company & directors have a participating interest
997,935
Taxation and social security
921
835
Other creditors
490,477
481,428
Accruals and deferred income
12,056
13,526
1,127,836
2,278,243
Trade creditors totalling £624,382 (2022:£784,519) included in amounts falling due within one year are secured by charges on specific finance agreements.
Associated Credits Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 9 -
10
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Fixed term loans
740,698
945,201
Trade creditors (secured)
406,304
533,535
1,147,002
1,478,736
Trade creditors totalling £406,304 (2022:£533,535) included in amounts due more than one year are secured by charges on specific finance agreements.
11
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
180,006
166,586
2023
Movements in the year:
£
Liability at 1 January 2023
166,586
Charge to profit or loss
13,420
Liability at 31 December 2023
180,006
Deferred tax is based on the corporation tax rate of 19% (2022:19%).
12
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 10p each
2,500,000
2,500,000
250,000
250,000
13
Reserves
The profit and loss reserve records retained earnings and accumulated losses.
Associated Credits Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 10 -
14
Related party disclosure
The directors of Associated Credits Limited have control, joint control or significant influence over other companies. At the year end, debtor balances of £2,717,579 (2022:£1,919,556) are due from those companies, and creditor balances of £2,457,357 (2022:£2,947,491) are due to those companies.
In the year purchases totalling £203,400 (2022:£319,400) were made from those companies.
15
Ultimate controlling party
There was no ultimate controlling party as at 31 December 2023.
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