Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31truetruetruetruetruefalse2023-01-0133truefalsefalse 05147493 2023-01-01 2023-12-31 05147493 2022-01-01 2022-12-31 05147493 2023-12-31 05147493 2022-12-31 05147493 2022-01-01 05147493 2 2023-01-01 2023-12-31 05147493 2 2022-01-01 2022-12-31 05147493 d:Director1 2023-01-01 2023-12-31 05147493 d:Director2 2023-01-01 2023-12-31 05147493 d:Director3 2023-01-01 2023-12-31 05147493 e:CurrentFinancialInstruments 2023-12-31 05147493 e:CurrentFinancialInstruments 2022-12-31 05147493 e:UKTax 2023-01-01 2023-12-31 05147493 e:UKTax 2022-01-01 2022-12-31 05147493 e:ShareCapital 2023-12-31 05147493 e:ShareCapital 2022-12-31 05147493 e:ShareCapital 2022-01-01 05147493 e:CapitalRedemptionReserve 2023-01-01 2023-12-31 05147493 e:CapitalRedemptionReserve 2023-12-31 05147493 e:CapitalRedemptionReserve 2022-12-31 05147493 e:CapitalRedemptionReserve 2022-01-01 05147493 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 05147493 e:RetainedEarningsAccumulatedLosses 2023-12-31 05147493 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 05147493 e:RetainedEarningsAccumulatedLosses 2022-12-31 05147493 e:RetainedEarningsAccumulatedLosses 2022-01-01 05147493 d:OrdinaryShareClass1 2023-01-01 2023-12-31 05147493 d:OrdinaryShareClass1 2023-12-31 05147493 d:OrdinaryShareClass1 2022-12-31 05147493 d:FRS102 2023-01-01 2023-12-31 05147493 d:Audited 2023-01-01 2023-12-31 05147493 d:FullAccounts 2023-01-01 2023-12-31 05147493 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 05147493 e:Subsidiary1 2023-01-01 2023-12-31 05147493 e:Subsidiary1 1 2023-01-01 2023-12-31 05147493 e:Subsidiary2 2023-01-01 2023-12-31 05147493 e:Subsidiary2 1 2023-01-01 2023-12-31 05147493 e:Subsidiary3 2023-01-01 2023-12-31 05147493 e:Subsidiary3 1 2023-01-01 2023-12-31 05147493 e:Subsidiary4 2023-01-01 2023-12-31 05147493 e:Subsidiary4 1 2023-01-01 2023-12-31 05147493 6 2023-01-01 2023-12-31 05147493 f:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 05147493










AVF HOLDINGS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
AVF HOLDINGS LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 3
Directors' report
 
4 - 5
Independent auditor's report
 
6 - 9
Statement of comprehensive income
 
10
Statement of financial position
 
11
Statement of changes in equity
 
12
Notes to the financial statements
 
13 - 19


 
AVF HOLDINGS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their report and the financial statements for the year ended 31 December 2023. The Company has minimal trading activity and the contents of this report are applicable to the Company's trading subsidiaries.

Business review
 
In the prior years the company and its subsidiaries were acquired by AVF Global Limited.

Principal risks and uncertainties
 
The market continues to be highly competitive and the group manages this risk through significant investment in new product development and marketing initiatives.
 
The operations of the group expose it to a variety of financial risks including the effects of changes in foreign currency exchange rates, credit risk and liquidity risk.
 
The principal financial instruments of the group comprise Sterling, US Dollar, Euro and Canadian Dollar cash and bank accounts, bank overdrafts and loans together with trade debtors and trade creditors that arise directly from its operations. 
The main risks arising from the financial instruments of the group can be analysed as follows: 
Foreign currency risk 
The group is exposed in its trading operations to the risk of changes in foreign currency exchange rates. The group both buys and sells goods globally which therefore gives a natural hedge to an extent. The Board has also adopted a foreign exchange strategy to reduce the impact of foreign exchange rates movements as appropriate. The main foreign currencies in which the group operates are the US Dollar, Canadian Dollar and the Euro. The group has US-based subsidiaries which can affect the Sterling group Balance Sheet, as a result of the movements in the Sterling to Dollar exchange rates. 
Credit risk 
The principal financial assets of the group are bank balances, cash and trade debtors, which represent the group’s maximum exposure to credit risk in relation to financial assets.
 
Credit risk is managed by monitoring the aggregate amount and duration of exposure to any one customer depending upon their credit rating. 
In addition, the group takes out credit insurances for customers, where possible, and subject to the terms and conditions of the insurer. 
 
Page 1

 
AVF HOLDINGS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Liquidity risk 
The Group’s policy had been to ensure continuity of funding through arranging funding for operations via medium term bank loans and over-draft facilities to aid short-term flexibility. 
Going concern

In the 2022 financial statements the Board reported certain trading and cash-flow challenges but are pleased to report an improvement since that time. In particular we note the following points:
A. In summer 2024 the business refinanced with a new lender.  The facility in place is a CID facility for 3 years with a maximum drawdown of £1.5m based on a percentage of eligible debtors.  The Board are very pleased with the new relationship which has been very positive and supportive. Management have prepared forecasts through to the end of 2025 which show that the business will continue to operate within agreed facilities throughout that period, albeit the headroom is limited at certain points.
B. The order backlog and expected volumes for 2025 have increased compared to both 2023 and 2024 including new customers and increased volumes with existing customers.
C. Profit margins are on the increase due to freight costs stabilising back to previous levels and business focus so therefore 2024 and 2025 are expected to generate improved results.
As with most similar businesses, there continues to be pressure on cash and close management of day to day payments and receivables is being exercised to maximise the position and manage pressure points. Management are confident that the Company and Group will be in a position to meet their obligations for period not less than 12 months from the date the accounts are signed, although a certain level of uncertainty remains.

Financial key performance indicators
 
The directors do not consider the Company to have any ongoing financial or non-financial key performance indicators.
The Company for the foreseeable future will not actively trade. The directors expect that the Company will only receive dividends from subsidiaries and issue dividends to its parent company in future periods. 

Page 2

 
AVF HOLDINGS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

 
Employee matters
The group is committed to promoting policies to ensure that employees and those who seek to work for the group are treated equally regardless of sex, marital status, age, creed, colour, race or ethnic origin. 
The group gives full and fair consideration to applications for employment received from people with disabilities, having regard to their particular aptitudes and abilities. If employees become disabled, every effort is made to ensure that their employment continues and training or re-training is arranged and career development and promotion offered whenever practicable. The group’s policy is to provide equal opportunities to all its staff based upon the use of objective criteria and personal merit. 
The group believes in promoting the fullest involvement of employees in their work to gain their maximum understanding of and commitment to, the group’s objectives. This is achieved through regular meetings and an open management style that encourages participation and recognises effort. 
Environmental matters
At all of the group’s locations around the world, the group seeks to maintain the highest standards, being aware of social and environmental responsibilities. 


This report was approved by the board on 27 November 2024 and signed on its behalf.



A M Keenan
Director

Page 3

 
AVF HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Principal activity

Enter the Company's principal activity here...

Directors

The directors who served during the year were:

D A Gallimore (Chairman) 
S J West 
A M Keenan 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting 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 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Qualifying third party indemnity provisions

The Company has provided qualifying indemnity provisions in respect of the board of directors which were in force during the year and at the date of this report.

Matters covered in the Strategic report

Business review, principal risks and uncertainties facing the company, key performance indicators, discussion of employee matters and discussion of environmental matters have been included within the Strategic Report.

Page 4

 
AVF HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Auditor

The auditor, MHAwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 27 November 2024 and signed on its behalf.
 





A M Keenan
Director

Page 5

 
AVF HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AVF HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of AVF Holdings Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its loss 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 Auditor 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 United Kingdom, including the Financial Reporting Council'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.


Material uncertainty related to going concern


We draw attention to note 2.3 in the financial statements, which indicates that whilst the business has recently refinanced with a new lender, the amount of liquidity headroom available in the 12 months from the date of approval of these financial statements is limited at certain points in the year. As stated in note 2.3, these events or conditions, along with the other matters as set forth in note 2.3, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter. 


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.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
AVF HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AVF HOLDINGS LIMITED (CONTINUED)


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 ReportOur 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.


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report 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 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:


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 4, 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.


Page 7

 
AVF HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AVF HOLDINGS LIMITED (CONTINUED)


Auditor 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Enquiry of management and those charged with governance around actual and potential litigation and claims;
A review of legal and professional expense nominal accounts for any indications of non-compliance with laws and regulations;
Performing audit work over the risk of management override of controls, including testing of large and otherwise unusual journal entries and other adjustments for appropriateness;
Reviewing minutes of meetings of those charged with governance; and
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
 
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 Auditor's report.


Page 8

 
AVF HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AVF HOLDINGS LIMITED (CONTINUED)


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 2006Our 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.





Martin Ramsey BSc (Hons) FCCA (Senior statutory auditor)
for and on behalf of
MHA (Statutory auditor)
Birmingham, United Kingdom

27 November 2024
MHA is the trading name of Macintyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
Page 9

 
AVF HOLDINGS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£000
£000

  

Other external charges
  
(3)
(3)

Gross loss
  
(3)
(3)

Tax on loss
 6 
-
(40)

Loss for the financial year
  
(3)
(43)

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 13 to 19 form part of these financial statements.

Page 10

 
AVF HOLDINGS LIMITED
REGISTERED NUMBER: 05147493

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£000
£000

Fixed assets
  

Investments
 7 
4,758
4,758

  
4,758
4,758

Current assets
  

Debtors: amounts falling due within one year
  
1
1

  
1
1

Creditors: amounts falling due within one year
  
(2,016)
(2,013)

Net current liabilities
  
 
 
(2,015)
 
 
(2,012)

Total assets less current liabilities
  
2,743
2,746

Net assets
  
2,743
2,746

Capital and reserves
  

Called up share capital 
 10 
555
555

Capital redemption reserve
 11 
158
158

Profit and loss account
 11 
2,030
2,033

  
2,743
2,746


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 November 2024.




A M Keenan
Director


The notes on pages 13 to 19 form part of these financial statements.

Page 11

 
AVF HOLDINGS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 January 2022
555
158
2,076
2,789


Comprehensive income for the year

Loss for the year
-
-
(43)
(43)



At 1 January 2023
555
158
2,033
2,746


Comprehensive income for the year

Loss for the year
-
-
(3)
(3)


At 31 December 2023
555
158
2,030
2,743


The notes on pages 13 to 19 form part of these financial statements.

Page 12

 
AVF HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

AVF Holdings Limited is a company limited by shares and incorporated in England and Wales. Its registered office is located at Road 30, Hortonwood, Telford, Shropshire, TF1 7YE.
The principal activity of the group is as a highly innovative designer and supplier of accessories focused on home entertainment support systems. The principal activity of the Company is that of a holding company.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

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:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of AVF Global Limited as at 31 December 2023 and these financial statements may be obtained from Road 30, Hortonwood, Telford, Shropshire, TF1 7YE.

Page 13

 
AVF HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

In the 2022 financial statements the Board reported certain trading and cash-flow challenges but are pleased to report an improvement since that time. In particular we note the following points:
A. In summer 2024 the business refinanced with a new lender.  The facility in place is a CID facility for 3 years with a maximum drawdown of £1.5m based on a percentage of eligible debtors.  The Board are very pleased with the new relationship which has been very positive and supportive. Management have prepared forecasts through to the end of 2025 which show that the business will continue to operate within agreed facilities throughout that period, albeit the headroom is limited at certain points.
B. The order backlog and expected volumes for 2025 have increased compared to both 2023 and 2024 including new customers and increased volumes with existing customers.
C. Profit margins are on the increase due to freight costs stabilising back to previous levels and business focus so therefore 2024 and 2025 are expected to generate improved results.
As with most similar businesses, there continues to be pressure on cash and close management of day to day payments and receivables is being exercised to maximise the position and manage pressure points. Management are confident that the Company and Group will be in a position to meet their obligations for period not less than 12 months from the date the accounts are signed, although a certain level of uncertainty remains.

 
2.4

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.5

Debtors

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.

 
2.6

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.

 
2.7

Creditors

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.

Page 14

 
AVF HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Foreign currency translation

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.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.9

Taxation

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 reporting date in the countries where the Company operates and generates income.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgments and estimates.
There are no key judgments concerning the future, or other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Page 15

 
AVF HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2023
2022
£000
£000

Fees payable to the Company's auditor for the audit of the Company's financial statements
2
2

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


5.


Employees



The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Directors
3
3

The Directors are remunerated through other group companies.


6.


Taxation


2023
2022
£000
£000

Corporation tax


Corp tax - prior yr
-
40


-
40


Total current tax
-
40

Deferred tax

Total deferred tax
-
-


Tax on loss
-
40
Page 16

 
AVF HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
6.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£000
£000


Loss on ordinary activities before tax
(3)
(3)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
(1)
(1)

Effects of:


Adjustment to deferred tax due to changes in tax rates
-
1

Unrelieved tax losses carried forward
1
40

Total tax charge for the year
-
40


Factors that may affect future tax charges

In the spring budget 2021, the UK Government announced that the UK corporation tax rate would increase to 25% with effect from 1 April 2023, the effects of which are immaterial in the current year. 

Page 17

 
AVF HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Fixed asset investments


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Holding

AVF Property Holdings Limited
England
Investment company
100%
AVF Group Limited
England
Design, selling, marketing and distribution of quality audio and vision equipment supports
100%
AVF Group Inc
USA
Selling, marketing and distribution of quality audio and vision equipment supports
100%
TV Furniture Direct Limited
England
Dormant company
100%

AVF Group Inc is incorporated in the United States of America. The principal place of business is 2775 Broadway Buffalo, New York 14227, USA.
The registered office of all UK subsidiaries is Road 30, Hortonwood, Telford, Shropshire, TF1 7YE.


8.


Debtors

2023
2022
£000
£000


Prepayments and accrued income
1
1



9.


Creditors: Amounts falling due within one year

2023
2022
£000
£000

Amounts owed to group undertakings
2,016
2,013


Amounts owed to group undertakings are interest free and repayable on demand.

Page 18

 
AVF HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Share capital

2023
2022
£000
£000
Allotted, called up and fully paid



555,333 (2022 - 555,333) Ordinary shares of £1.00 each
555
555



11.


Reserves

Capital redemption reserve

Represents amounts historically transferred upon the redemption or purchase of the Company's own shares.

Profit and loss account

Includes all current and prior period retained profits and losses.


12.


Related party transactions

The Group has taken advantage of the exemption allowed by FRS 102  not to disclose transactions and balances between wholly-owned members of the Group.


13.


Ultimate parent and controlling party

The Company is a subsidiary undertaking of AVF Global Limited, a company registered in England and Wales.
The largest and smallest group in which the results of AVF Holdings Limited for the year to 31 December 2023 are consolidated is that headed by AVF Global Limited whose principal place of business is at Road 30, Hortonwood Industrial Estate, Telford, Shropshire, TF1 7YE. The consolidated financial statements of this group are available to the public and may be obtained from the above address.
The group has no single controlling party.

Page 19