REGISTERED NUMBER: |
Financial Statements |
for the Year Ended 31 December 2023 |
for |
Oem Appliances Limited |
REGISTERED NUMBER: |
Financial Statements |
for the Year Ended 31 December 2023 |
for |
Oem Appliances Limited |
Oem Appliances Limited (Registered number: 08126863) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Balance Sheet | 1 |
Notes to the Financial Statements | 2 |
Oem Appliances Limited (Registered number: 08126863) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
Investments | 6 |
CURRENT ASSETS |
Stocks |
Debtors | 7 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 8 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 9 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 12 |
Retained earnings |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
Oem Appliances Limited (Registered number: 08126863) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Oem Appliances Limited is a |
Registered number: |
Registered office: |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The financial statements have been prepared on the basis of going concern, which assumes that the company will continue to operate its business for the foreseeable future. The company's and the group's ability to continue as a going concern is dependent on the continued access to adequate headroom within its invoice financing facility together with the support of suppliers and enhanced terms of payment from suppliers. However, as at the date of signing these accounts, the company has agreed reduced covenant obligations with its lender until June 2025 and these amended covenants are pending a third party review by a firm of accountants, as requested by the lender, against trading forecasts prepared by the directors. These forecasts assess whether the company has sufficient working capital and cash flows to meet its obligations as they fall due over the 12 months following the signing of these financial statements, including servicing its debt, maintaining operations, and fulfilling its commitments to employees and suppliers. |
The company's directors are actively addressing the situation and are working towards finding a resolution that takes into account the interests of all its stakeholders. In particular, the directors are working with the company's principal lender along with third party advisors to consider the optimal route forward, including a possible sale of business assets which would significantly reduce the group's exposure to requiring third party funding. The group's funding facility is disclosed in the notes. |
If the company is unable to successfully address the situation and its associated challenges, it may have a material adverse effect on the company's financial condition and operating results. Given the outcome of the third party review is not yet complete, there is a material uncertainty in relation to the ability of the company to continue as a going concern. The financial statements presented do not include any adjustments to reflect the downside scenario. |
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
The preparation of financial statements in conformity with generally accepted principles requires the directors to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Some of these estimates and judgements are inherently uncertain and subject to change. The impact of any change in accounting estimates is reflected in the period in which the estimate is revised, if the revision only affects the period, or in the period of the revision and future periods if the revision affects both current and future periods. In this period the directors believe that the critical accounting policies where judgements or estimations are necessarily applied are as follows. |
Critical judgements in applying the company's accounting policies |
There were no critical judgements made in applying the company's accounting policies. |
Critical accounting estimates and assumptions |
Oem Appliances Limited (Registered number: 08126863) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents net invoiced sales of goods and marketing services, excluding value added tax. |
Revenue is recognised as the company becomes entitled to consideration for the goods supplied. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of the business in 2012, is being amortised evenly over its estimates useful life of ten years, a period deemed appropriate by the directors. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimates of useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, of economic utilisation of the assets. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Impairment of debtors |
Management perform ongoing reviews of the recoverability of debtor balances. An allowance for doubtful debts is maintained for potential credit losses based on management's assessment of the expected collectability of amounts receivable. The allowance for bad debts is reviewed periodically to assess the adequacy of the allowance. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Oem Appliances Limited (Registered number: 08126863) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | INTANGIBLE FIXED ASSETS |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
Amortisation for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Oem Appliances Limited (Registered number: 08126863) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
5. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Plant and | and |
leasehold | machinery | fittings |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Oem Appliances Limited (Registered number: 08126863) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
5. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
6. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Oem Appliances Limited (Registered number: 08126863) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts |
Hire purchase contracts (see note 10) |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors |
9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans |
Hire purchase contracts (see note 10) |
10. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
The financial commitments noted above represents the total amount of payments remaining on property and other leases. |
Oem Appliances Limited (Registered number: 08126863) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
11. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Hire purchase contracts | 236,426 | 255,253 |
Invoice finance | 2,675,241 | 730,801 |
Bank loans | 1,208,334 | 40,000 |
The hire purchase liabilities are secured on the specific assets financed. |
Other Securities |
A fixed and floating charge over all company assets and undertakings is held by Lloyds Bank Commercial Finance Ltd, this charge contains a negative pledge. |
The group has entered into a multilateral guarantee with the Lloyds Bank Commercial Finance Ltd as follows: |
Debentures consisting of fixed and floating charged over all the assets and undertaking of the reporting entity, OEM Appliances, Coolmed Limited, Xingbang UK Limited, Ship It Appliances Limited, For Everyone Group Ltd, Evec Ltd, CWW Holdings Limited and Coolmed Calibration Ltd. |
In addition a further debenture has been entered into with Close Brothers Limited which includes a fixed and floating charges of the assets of the company and its fellow group companies, Coolmed Limited, Evec Limited, Ship it Appliances Limited and Xingbang UK Limited. |
As at 31 December 2023, the group had an invoice finance facility of £3,865,346 and a loan of £1,208,334. |
12. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
"A" Ordinary | £1 | 35 | 35 |
"B" Ordinary | £1 | 5 | 5 |
"C" Ordinary | £1 | 25 | 25 |
"D" Ordinary | £1 | 35 | 35 |
100 | 100 |
Oem Appliances Limited (Registered number: 08126863) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
13. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was qualified on the following basis: |
Basis for qualified opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
We were not appointed as auditors of OEM Appliances Limited until after 31st December 2022 and thus did not observe the counting of physical stock at the beginning of the year. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 31st December 2022 which are stated in the balance sheet at £86,563. |
As a result of this matter, we were unable to determine whether any adjustments might have been found necessary in respect of recorded or unrecorded stock, and the elements making up the profit and loss account, statement of changes in equity and statement of cash flows. |
Material uncertainty related to going concern |
We draw attention to Note 2 in the financial statements, which indicates that the company has held discussions regarding its principal | financing. |
As part of these discussions, revised forecasts have been prepared and reduced covenant obligations have been agreed until June 2025, as | the original covenants were unable to be met. The revised forecasts are to be subject to a review by a competent third party firm of | accountants as requested by the company's main lender of finances. If the third party's review of the revised forecasts indicates that the | reduced covenants will not be met, the lender will complete a further internal review before deciding upon the future funding facility. |
The wider group is also considering the potential sale of business assets, which would significantly reduce the group's exposure to requiring | third party lending. |
As stated in Note 2, these events or conditions 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. |
for and on behalf of |
14. | FINANCIAL COMMITMENTS |
Pension Commitments |
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge in respect of contributions to the fund amounts to £67,867 (2022 £30,375). |
15. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
16. | ULTIMATE CONTROLLING PARTY |
The ultimate parent undertaking and controlling party is For Everyone Group Limited. The registered office of For Everyone Group Limited is Unit 8 Centenary Park, Coronet Way, Salford, Greater Manchester, England, M50 1RE. |