Registered number: 11156085
FIBRE ASSETS LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 MARCH 2024
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FIBRE ASSETS LIMITED
REGISTERED NUMBER: 11156085
BALANCE SHEET
AS AT 31 MARCH 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 October 2024.
The notes on pages 3 to 13 form part of these financial statements.
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FIBRE ASSETS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
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Comprehensive income for the year
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Total comprehensive income for the year
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Comprehensive income for the year
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Total comprehensive income for the year
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The notes on pages 3 to 13 form part of these financial statements.
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Fibre Assets Limited is a private company, limited by shares and incorporated in the England & Wales. The Company's registration number is 11156085. The Company's registered office address is 13 Southwick Mews, London, Greater London, England, W2 1JG. These financial statements are rounded to the nearest £1.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company holds an agreement with investors to provide loan funding up to a prescribed amount. The cash flow projections show that this additional investment will support the Company for the next 12 months.
The negative equity position on the balance sheet reflects the on-going development of the business and the capital-intensive nature of the industry. As we move forward, the Directors anticipate a reversal of this situation through a combination of increased revenues and prudent cost management.
During the financial year, the Company continued its Full Fibre build in selected parts in the UK and gradually accelerated its rollout plans via operational efficiencies and increases in resources. The growth in the customer base has continued who are enjoying the high-quality fibre broadband service. The management team has demonstrated its commitment to fiscal responsibility and adaptability by implementing cost-saving measures without compromising the quality of service. The Company was awarded two UK government BDUK contracts to design and deliver fibre broadband services in selected areas of Staffordshire and Derbyshire. Furthermore, the Company is actively exploring partnerships and collaborations that will help optimise operational efficiencies and expand market reach.
The Company anticipates that losses will continue at a similar level for the upcoming year, before decreasing and ultimately reaching a breakeven point the following year. Ongoing support has been secured to maintain operations and strategically navigate the competitive landscape in the UK.
The Directors believe that these strategies, along with the Company's financial resources and operational performance, will enable the Company to continue as a going concern for the foreseeable future.
The Directors have reviewed the Company's cash flow projections for the next 12 months and beyond and have concluded that the Company has adequate resources to continue in operational existence for the foreseeable future.
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. 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.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Assets under construction are not depreciated.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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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.
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Judgments in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgments, estimates, and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year.
The nature of estimation means that the actual outcome could differ from those 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.
The critical accounting estimates or judgments applied by the directors which have a significant impact on the amounts disclosed in the financial statements are as follows:
Depreciation
Management have estimated the useful economic life of fixed assets and depreciation has in turn been calculated on this basis.
Capitalisation of labour
Management have estimated salary costs relating to the build of Fibre Networks, the assessment considers employees individually, based on their job role, and the percentage of time spent on building such assets.
Capitalisation of interest
Management have estimated capitalised loan interest, using the year end percentage of total net book value of fixed assets over loans and preference shares due.
Impairment of fixed assets
Management have made an assessment as to the carrying value of total fixed assets to ensure there are no indications of impairment.
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The average monthly number of employees, including directors, during the year was 139 (2023 - 40).
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Assets under construction
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Transfers between classes
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Transfers between classes
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Finished goods and goods for resale
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Taxation and social security
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Accruals and deferred income
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The credit card balance, included in other creditors, is secured by way of fixed charge over the bank accounts.
Amounts owed to group undertakings are unsecured, interest free, with no fixed date of repayment.
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Creditors: Amounts falling due after more than one year
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Accrued interest on other loans
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Accrued interest on share capital treated as debt
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Share capital treated as debt
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Other loans are secured by way of fixed and floating charge over all the property or undertakings of the Company.
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Analysis of the maturity of loans is given below:
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Other loans more than one year
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Shares classified as equity
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Allotted, called up and fully paid
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1,387 (2023 - 1,387) Ordinary shares of £1.00 each
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Shares classified as debt
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Allotted, called up and fully paid
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36,287,268 (2023 - 3,487,268) Preference shares of £1.00 each
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During the year, 32,800,000 of perference shares were issued at a £1.00 each.
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 and charge represents contributions payable by the Company to the fund and amounted to £282,124 (2023: £79,975). At 31 March 2024, £61,656 (2023: £41,620) was due to the fund and is included in creditors.
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FIBRE ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Commitments under operating leases
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At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Post balance sheet events
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On 15 April 2024, the Company issued 3,112,642 preference shares at nominal value of £1 per share.
Post year end, the Company drew down a total of £18,200,000 on a loan facility from its parent entity and entered into an operating lease commitment in relation to premises, the total lease instalments being £360,000.
The immediate parent undertaking is Fibre Assets Holdco Limited. The registered office is C/O Foresight Group, The Shard, 32 London Bridge Street, London, United Kingdom, SE1 9SG. This is the smallest group within which the Company belongs.
The ultimate parent undertaking is Averon Park Limited. The registered office is C/O Foresight Group Llp, The Shard, 32 London Bridge Street, London, United Kingdom, SE1 9SG. This is the largest group within which the Company belongs.
Accordingly, the preparation of group financial statements is not required under section 401 of the Companies Act 2006. These financial statements present information about the company as an individual undertaking.
The auditors' report on the financial statements for the year ended 31 March 2024 was unqualified.
The audit report was signed on 4 November 2024 by Aaron Widdows ACA FCCA (Senior Statutory Auditor) on behalf of Price Bailey LLP.
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