Company registration number 08822935 (England and Wales)
OAKAPPLE TWO PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
OAKAPPLE TWO PLC
COMPANY INFORMATION
Directors
P J Taylor
G Douglas
Secretary
D Marsh
Company number
08822935
Registered office
1 Worsley Court
High Street
Worsley
Manchester
M28 3NJ
Auditor
Champion Accountants LLP
Chartered Accountants & statutory auditor
1 Worsley Court
High Street
Worsley
Manchester
M28 3NJ
OAKAPPLE TWO PLC
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 18
OAKAPPLE TWO PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present their strategic report for the year ended 31 December 2023.

Business Review and Future Developments

The principal activity of the company is the generation and supply of electricity from solar photovoltaic panels on new-build homes in the United Kingdom. Since the company commenced trading in February 2015 it has been managing the portfolio of solar PV systems. This process is considerably more time consuming than originally anticipated resulting in increased management costs which has impacted profitability. It was envisaged that all the systems would be in place However, due to Covid-19 and resultant lockdowns we were unable to access a number of properties, further delaying them coming on stream and Covid-19 also caused delays in the processing of FiT registrations. However, having made progress in 2022 there are now only 8 systems still to be registered, all with their own individual problems. The receipt of backdated FiT income largely contributed to an operating profit of £62,961 in the year to 31st December 2022.With both 2023 & 2024 also producing small net profits.

We still have a number of systems not FiT registered and we are exploring exporting the energy , as well as registering all properties to receive Rego's . Both these initiatives will add income of circa 15% to the portfolio. We hope to conclude this initiative in quarter 1 of 2025.

 

 

 

Principal Risks and Uncertainties

The principal risks and uncertainties facing the business that could materially affect the company's future financial position are as follows:

 

* Solar irradiation is lower than estimated

 

* Inflation differs to forecast

 

* Operational issues relating to improper installation, underperforming or faulty equipment

 

* Higher than expected cost of operating and maintenance.

 

Credit risk:

 

The company's principal financial assets will be bank balances, trade and other debtors. The directors recognise that there will be a concentration of credit risk, with exposure limited to a small number of counterparties and customers. The directors will undertake to monitor closely the status of these counterparties on an on-going basis.

 

Cash flow risk:

 

The Directors will carefully monitor the cash position of the company to ensure payments can be met as they fall due in accordance with debenture and other loan agreements.

 

The directors are satisfied that adequate strategies will be in place to minimise and mitigate the adverse impact of the above.

 

 

On behalf of the board

P J Taylor
Director
26 September 2024
OAKAPPLE TWO PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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 the generation and supply of electricity from solar photovoltaic panels on new build homes in the United Kingdom.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

P J Taylor
D Marsh
(Resigned 15 January 2024)
G Douglas
Auditor

The auditor, Champion Accountants LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
P J Taylor
Director
26 September 2024
OAKAPPLE TWO PLC
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors are responsible for preparing the annual report 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

OAKAPPLE TWO PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OAKAPPLE TWO PLC
- 4 -
Opinion

We have audited the financial statements of Oakapple Two PLC (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

OAKAPPLE TWO PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OAKAPPLE TWO PLC (CONTINUED)
- 5 -
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 directors' report.

 

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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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.

Auditor's 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 an auditor's report 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.

As part of our planning process:

 

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006 & GDPR.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment

accordingly.

- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

 

 

 

 

 

 

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

OAKAPPLE TWO PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OAKAPPLE TWO PLC (CONTINUED)
- 6 -

- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to deferred income, depreciation methods & cut-off.

- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.

- Testing key revenue lines, in particular cut-off, for evidence of management bias.

- Obtaining third-party confirmation of material bank balances.

- Documenting and verifying all significant related party balances and transactions.

There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

Mark Turner FCA
Senior Statutory Auditor
For and on behalf of Champion Accountants LLP
26 September 2024
Chartered Accountants
Statutory Auditor
1 Worsley Court
High Street
Worsley
Manchester
M28 3NJ
OAKAPPLE TWO PLC
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
104,930
130,501
Cost of sales
(9,069)
(23,939)
Gross profit
95,861
106,562
Administrative expenses
(48,086)
(43,601)
Operating profit
4
47,775
62,961
Interest payable and similar expenses
7
(36,139)
(36,073)
Profit before taxation
11,636
26,888
Tax on profit
8
-
0
-
0
Profit for the financial year
11,636
26,888
Retained earnings brought forward
(133,244)
(160,132)
Retained earnings carried forward
(121,608)
(133,244)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

OAKAPPLE TWO PLC
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
450,006
487,965
Current assets
Debtors
10
117,225
78,384
Cash at bank and in hand
33,436
71,352
150,661
149,736
Creditors: amounts falling due within one year
11
(213,334)
(217,014)
Net current liabilities
(62,673)
(67,278)
Total assets less current liabilities
387,333
420,687
Creditors: amounts falling due after more than one year
12
(458,941)
(503,931)
Net liabilities
(71,608)
(83,244)
Capital and reserves
Called up share capital
14
50,000
50,000
Profit and loss reserves
15
(121,608)
(133,244)
Total equity
(71,608)
(83,244)
The financial statements were approved by the board of directors and authorised for issue on 26 September 2024 and are signed on its behalf by:
P J Taylor
Director
Company registration number 08822935 (England and Wales)
OAKAPPLE TWO PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
43,214
147,500
Interest paid
(36,139)
(36,073)
Net cash inflow from operating activities
7,075
111,427
Financing activities
Repayment of debentures
(39,119)
(42,263)
Repayment/advance of bank loans
(5,872)
(3,425)
Net cash used in financing activities
(44,991)
(45,688)
Net (decrease)/increase in cash and cash equivalents
(37,916)
65,739
Cash and cash equivalents at beginning of year
71,352
5,613
Cash and cash equivalents at end of year
33,436
71,352
OAKAPPLE TWO PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information

Oakapple Two PLC is a private company limited by shares incorporated in England and Wales. The registered office is 1 Worsley Court, High Street, Worsley, Manchester, M28 3NJ.

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

The company has net liabilities amounting to true£71,608 (2022: £83,244) at the balance sheet date. The company is reliant upon the continued support of its directors and associated undertakings. It has been indicated that this support will continue for the foreseeable future. The directors have considered the future profitability of the company and have prepared profit and cash flow forecasts for at least 12 months from the date of these financial statements. The directors have also considered the trading position of related parties and do not foresee that this will give rise to any significant exposure to the company. Based on these discussions and the projected trading of the company, the directors are of the opinion that the company will have adequate resources to continue its operations for the foreseeable future. For this reason the directors consider the going concern basis to be appropriate.

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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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
5% straight line

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.

OAKAPPLE TWO PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Cash and cash equivalents

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.

 

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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

OAKAPPLE TWO PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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 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.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

OAKAPPLE TWO PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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
Turnover
2023
2022
£
£
Turnover analysed by class of business
Rendering of services
104,930
130,501
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
104,930
130,501
OAKAPPLE TWO PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
37,959
37,959
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
5,000
3,609
6
Employees

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

2023
2022
Number
Number
3
3
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,080
701
Other finance costs:
Other interest
35,059
35,372
36,139
36,073
OAKAPPLE TWO PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
8
Taxation

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
11,636
26,888
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
2,211
5,109
Unutilised tax losses carried forward
(2,211)
(5,109)
Taxation charge for the year
-
-
9
Tangible fixed assets
Plant and equipment
£
Cost
At 1 January 2023 and 31 December 2023
759,180
Depreciation and impairment
At 1 January 2023
271,215
Depreciation charged in the year
37,959
At 31 December 2023
309,174
Carrying amount
At 31 December 2023
450,006
At 31 December 2022
487,965
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,150
-
0
Unpaid share capital
37,500
37,500
Other debtors
15,000
803
Prepayments and accrued income
61,575
40,081
117,225
78,384
OAKAPPLE TWO PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
11
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Debenture loans
13
42,262
42,263
Bank loans
13
5,872
5,872
Trade creditors
35,071
4,818
Taxation and social security
851
-
0
Other creditors
33,752
63,752
Accruals and deferred income
95,526
100,309
213,334
217,014
12
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Debenture loans
13
425,777
464,895
Bank loans and overdrafts
13
33,164
39,036
458,941
503,931
13
Loans and overdrafts
2023
2022
£
£
Debenture loans
468,039
507,158
Bank loans
39,036
44,908
507,075
552,066
Payable within one year
48,134
48,135
Payable after one year
458,941
503,931

 

Repayment is due annually by instalments by March 2035. Interest will be charged at a fixed rate each year until the end of the term.

14
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000

At the balance sheet date 12,500 ordinary £1 shares were fully paid and 37,500 ordinary £1 shares were not fully paid.

OAKAPPLE TWO PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
15
Reserves
Profit and loss reserves
This reserve records retained earnings and accumulated losses.
16
Directors' transactions

At the year end the company owed a director £NIL (2021 :£10,500 ). The loan has no fixed repayment date and is interest free.

17
Related party transactions

Entities deemed to be under common control had the following transactions during the current and previous year:

 

During the year the company had expenses totalling £5,000 (2022: £10,849).

 

At the year end included within other debtors the company were owed £15,000 (2022 : £15,000 ).

 

At the year end included within creditors totalling £33,752 (2022: £63,752).

 

At the year end included within accruals totalling £32,711 (2022: £72,322).

18
Ultimate controlling party

The company is controlled by P J Taylor by virtue of his majority shareholdings.

19
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
11,636
26,888
Adjustments for:
Finance costs
36,139
36,073
Depreciation and impairment of tangible fixed assets
37,959
37,959
Movements in working capital:
(Increase)/decrease in debtors
(38,841)
38,352
(Decrease)/increase in creditors
(3,679)
8,228
Cash generated from operations
43,214
147,500
OAKAPPLE TWO PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
20
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
71,352
(37,916)
33,436
Borrowings excluding overdrafts
(552,066)
44,991
(507,075)
(480,714)
7,075
(473,639)
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