| AFS Rotel Limited |
| Notes to the Accounts |
| for the year ended 31 March 2025 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102,The Financial Reporting Standard applicable in the UK an Republic of Ireland (as applied to small entities by section 1A of the standard) |
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Entities are required to adopt the going concern basis of accounting, except in circumstances where the company determines at the date of approval of the accounts that it is not acceptable. The future is of course uncertain due to the unknown future impact that Coronavirus, Ukraine war and cost of living crisis might have on the Company which may be out of our control. |
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These could affect purchase supply chains, material costs and debtors payment procedures. |
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We have however been able to look at the position since the year-end up to December 2025. At present the Directors have carried out an assessment and believe the company is willing and able to stay in business for the foreseeable future covering at least 12 months from approval of these accounts subject to the above. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Freehold buildings |
over 25 years |
(Land at no depreciation) |
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Leasehold land and buildings |
over the lease term |
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Plant and machinery |
10 - 25% straight line |
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Fixtures, fittings, tools and equipment |
10 - 25% straight line |
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Plant purchased on finance lease (note 7 & note 13) is now considered to be of Nil net residual value to the company and has been written off by additional depreciation. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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| 2 |
Tangible fixed assets |
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Freehold Land and buildings |
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Plant and machinery * etc |
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Motor vehicles |
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Total |
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Cost |
£ |
£ |
£ |
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At 1 April 2024 |
182,108 |
|
779,971 |
|
210,981 |
|
1,173,060 |
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Additions |
- |
|
35,700 |
|
79,398 |
|
115,098 |
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At 31 March 2025 |
182,108 |
|
815,671 |
|
290,379 |
|
1,288,158 |
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Depreciation |
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At 1 April 2024 |
53,866 |
|
775,803 |
|
107,981 |
|
937,650 |
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Charge for the year |
4,552 |
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6,596 |
|
42,000 |
|
53,148 |
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At 31 March 2025 |
58,418 |
|
782,399 |
|
149,981 |
|
990,798 |
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Net book value |
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At 31 March 2025 |
123,690 |
|
33,272 |
|
140,398 |
|
297,360 |
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At 31 March 2024 |
128,242 |
|
4,168 |
|
103,000 |
|
235,410 |
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* (incl. £317,108 on finance lease note 7 & note 13) |
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There were no capital commitments authorised or contracted for at the year-end (2024 £Nil). |
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| 3 |
Debtors |
2025 |
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2024 |
| £ |
£ |
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Trade debtors |
10,354 |
|
223 |
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Factoring acct- net (see note 3b) |
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23,144 |
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29,676 |
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Karnarva UK Ltd (see note 3a) |
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4,500 |
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4,500 |
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Director's account |
- |
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Other debtors (including VAT receivable £7,366) |
21,522 |
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7,135 |
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59,520 |
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41,534 |
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| 3a |
Karnarva UK Ltd is a company jointly held by JS Williams and Mrs D Williams. It is expected this money will be repaid within the next 12 months, or will continue to be available to offset against the creditor in note 4. |
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| 3b |
The factoring account is financed by Lloyds Bank. The figure in the accounts represents the invoices outstanding to the factor by our customers of £85,318 (2024 £122,586) at the year end less advances made to us by Lloyds Bank of £62,174 (2024 £92,910), net £23,144 (2024 £29,676). We believe our customers will pay the Factor and the net balance is correctly due to us. |
| 4 |
Creditors: amounts falling due within one year |
2025 |
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2024 |
| £ |
£ |
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Bank loans and overdrafts (note 6) |
23,475 |
|
10,000 |
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Finance lease and hire purchase contracts (note 7) |
7,718 |
|
35,241 |
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Trade creditors |
69,583 |
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106,027 |
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Corporation tax |
4 |
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- |
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Karnarva UK Ltd (see note 3a) |
27,322 |
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25,322 |
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Director's account |
11,000 |
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15,000 |
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Other taxes and social security costs |
5,777 |
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2,184 |
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Retirement benefit scheme (see note 4a and note 12) |
8,360 |
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8,720 |
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Other creditors / Accruals |
107,646 |
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80,579 |
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260,885 |
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283,073 |
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| 4a |
Retirement Benefit Scheme |
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The creditor relates to accumulated rent due on the property at Bolton less payment made to or on behalf of the scheme. The property was vacated on 1 February 2013 and the lease ceased. |
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| 5 |
Creditors: amounts falling due after one year |
2025 |
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2024 |
| £ |
£ |
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Bank loans |
46,192 |
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11,667 |
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Obligations under finance lease and hire purchase contracts |
- |
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7,715 |
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46,192 |
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19,382 |
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| 6 |
Bank loans and overdraft |
2025 |
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2024 |
| £ |
£ |
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Amounts falling due within one year |
23,475 |
|
10,000 |
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Amounts falling due after one year |
46,192 |
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11,667 |
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Total bank loan |
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69,667 |
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21,667 |
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Bank overdraft |
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- |
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- |
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69,667 |
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21,667 |
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The bank overdraft and borrowings on any account are secured by fixed and floating charges. |
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A new company vehicle has been purchased with the assistance of Hire Purchase from Aldermore Bank in March 2025. This is repayable over 48 months. |
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The company obtained a Bounce Back Loan of £50,000 on 12 May 2020. The first repayment was £936.00 on 14 June 2021. Repayments including interest at 2.5% wil be made for the next 59 months following that date. The remaining balance at 31 March 2025 is £11,667. |
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| 7 |
Obligations under Finance Lease and Hire Purchase contracts |
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2025 |
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2024 |
| £ |
£ |
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Amounts falling due within one year |
7,718 |
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35,241 |
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Amounts falling due after one year |
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- |
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7,715 |
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Apportioned capital amount |
7,718 |
|
42,956 |
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This was used to purchase equipment and was secured on the same. The Finance lease primary period has now finished (see note 13). |
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| 8 |
Provisions for liabilities |
2025 |
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2024 |
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Deferred Tax |
£ |
£ |
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Charge/(Credit) for the year |
15,900 |
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(2,300) |
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Deferred taxation: |
£ |
£ |
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Accelerated capital allowances |
20,400 |
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4,500 |
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2025 |
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2024 |
| £ |
£ |
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At 1 January |
4,500 |
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6,800 |
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Deferred tax charge/(credit) in profit and loss account |
15,900 |
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(2,300) |
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20,400 |
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4,500 |
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Current tax charge (note 4) |
4 |
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- |
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| 9 |
Share capital |
Nominal |
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2025 |
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2025 |
|
2024 |
| value |
Number |
£ |
£ |
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Allotted, called up and fully paid: |
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Ordinary shares |
50p each |
|
200 |
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100 |
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100 |
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| 10 |
Controlling party |
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The ultimate controlling party is J S Williams. |
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| 11 |
Other information |
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AFS Rotel Limited is a private company limited by shares and incorporated in England. Its registered office is: Unit 1 Broadclough Mill, Burnley Road, BACUP OL13 8PJ |
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| 12 |
Related party transactions |
2025 |
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2024 |
| £ |
£ |
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The directors loan due to Mrs D Williams by the company is included in creditors |
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A total of £11,000 (2024 £15,000) is outstanding to Mrs D Williams. Movement in the year |
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4,000 |
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(10,526) |
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Owed to the Retirement Benefit Scheme for rent less payments |
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(8,360) |
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(8,720) |
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(note 4a) |
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Owed to the Retirement Benefit Scheme for pension premiums |
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(40,500) |
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(40,500) |
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(included in note 4 - other creditors) |
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Equipment rental is owed (to)/from Karnarva (UK) Ltd of |
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(27,322) |
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(25,322) |
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The amount (credited)/charged in the year being |
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(2,000) |
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3,136 |
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The company loaned Karnarva (UK) Ltd a net of £4,500 in previous years. This balance has not changed in 2025 or 2024. |
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| 13 |
Other commitments - Company Plant - Finance lease |
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The company entered into a rental agreement facility in December 2017 for use of equipment. The rental agreement ran for 60 months at £5,934 plus VAT per month. There is a secondary rental period available at £3,171 annually. The primary rental period ended in November 2022. |
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This was considered to represent a finance lease in accordance with the accounting policy. The asset and finance lease liability are included in the accounts. |
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| 14 |
Average number of employees |
2025 |
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2024 |
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The number of employees during the year was |
8 |
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The number of employees during the year was |
8 |
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| 15 |
Contingent liability |
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In the absence of fully invoiced liabilities to utility costs, the directors estimate the liability at the year end, based upon its internal knowledge. |
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The liability calculated is included in the financial statements on the basis of the criteria for recognition. The directors believe, based upon its calculations, that this liability needs to be included, in order for the accounts to show a true and fair view. |
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However, it is considered that a contingent liability may exist for possible amendments to the liability for costs and other matters, which we cannot calculate. Should any such liabilities subsequently arise and be agreed, then provision will be included in the accounts. |