1.
General Information
Avrenim Facilities Management Limited is a private company limited by shares incorporated in England and Wales. The registered office is 16 Vesty Business Park, Vesty Road, Bootle, Merseyside, L30 1NY.
2.
Accounting Policies
2.1.
Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Avrenim Group Limited. These consolidated financial statements are available from its registered office at the following address:
- 16 Vesty Business Park, Vesty Road, Bootle, Merseyside, England, L30 1NY
2.2.
Going Concern Disclosure
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Avrenim Facilities Management Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
2.3.
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
2.4.
Tangible Fixed Assets and Depreciation
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
| Freehold |
|
| Computer Equipment |
|
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
2.5.
Leasing and Hire Purchase Contracts
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2.6.
Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition. Cost is calculated using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress includes raw materials, direct labour and an appropriate proportion of attributable production overheads based on normal operating capacity.
Net realisable value represents the estimated selling price in the ordinary course of business less estimated costs of completion and costs necessary to make the sale. Where necessary, provision is made for obsolete, slow-moving or damaged stock.
Avrenim Facilities Management Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
2.7.
Financial Instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
2.8.
Taxation
2.8.
Taxation - continued
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
...CONTINUED
Avrenim Facilities Management Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
2.9.
Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
2.10.
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
2.11.
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Avrenim Facilities Management Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
2.12.
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
3.
Average Number of Employees
The average monthly number of persons (including directors) employed by the company during the year was: 96 (2023: 109)
4.
Tangible Assets
| Land & Property | |||
|---|---|---|---|
| Freehold | Computer Equipment | Total | |
| £ | £ | £ | |
| Cost | |||
| As at 1 January 2024 |
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| Additions |
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| As at 31 December 2024 |
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| Depreciation | |||
| As at 1 January 2024 |
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| Provided during the period |
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| As at 31 December 2024 |
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| Net Book Value | |||
| As at 31 December 2024 |
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| As at 1 January 2024 |
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5.
Stocks
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Stock |
|
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Avrenim Facilities Management Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
6.
Debtors
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Due within one year | |||
| Trade debtors |
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| Prepayments and accrued income |
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| Other debtors |
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| Amounts owed by group undertakings |
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7.
Creditors: Amounts Falling Due Within One Year
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Trade creditors |
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| Bank loans and overdrafts |
|
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| Other borrowings | - |
|
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| Corporation tax |
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| Other taxes and social security |
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| Other creditors |
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| Accruals and deferred income |
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| Amounts owed to group undertakings |
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8.
Creditors: Amounts Falling Due After More Than One Year
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Bank loans |
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The maturity of the company bank loans are as follows:
|
2024
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2023
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||
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£
|
£
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||
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Due within one year
|
63,084
|
-
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Due between two and five years
|
378,979
|
-
|
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Due after more than five years
|
523,626
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-
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965,689
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-
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Avrenim Facilities Management Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
9.
Secured Creditors
Lloyds Bank Plc holds a fixed and floating charge over the property known as or being unit 16 Vesty Business Park, Vesty Road, L30 1NY. The property is freehold and is registered at the land registry under title no. MS572376 in respect of such credit balances of the company held with the lender. This charge relates to a charge filed at Companies House with a charge code 1114 8036 0004 dated 15 March 2024.
Lloyds Bank Plc holds a floating charge over the assets of the company, its fellow subsidiaries and parent company in respect of such credit balances of the company held with the lender. This charge relates to a 'Omnibus guarantee & set-off agreement' filed at Companies House with a charge code 1114 8036 0003 dated 29 February 2024.
Lloyds Bank Plc holds a fixed and floating charge over any property held by the company in respect of such credit balances of the company held with the lender. This charge relates to a charge filed at Companies House with a charge code 1114 8036 0003 dated 23 June 2021.
At the balance sheet date, the company had a bank loan of £275,000 (2023: £nil) which is secured by a personal guarantee given by a the directors of the company. No amounts have been recognised in respect of this guarantee as, in the opinion of the directors, it is unlikely that any liability will arise under the guarantee.
10.
Deferred Taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Accelerated capital allowances |
|
- | |
12.
Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Not later than one year |
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| Later than one year and not later than five years |
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Avrenim Facilities Management Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
13.
Related Party Transactions
Included within the 'Amounts owed by group undertakings' balance of £2,269,916 (2023: £2,494,578) are the following:
- Avrenim Group Limited who owns 100% of the shares of the company, owes £1,072,981 (2023: £1,438,445).
- Avrenim Energy Services Limited (a company 100% owned by Avrenim Group Limited - the parent of Avrenim Facilities Management Limited) owes £1,196,935 (2023: £807,921).
Included within the 'Amounts owed to group undertakings' balance of £561,803 (2023: £1,281,922) is the following:
- Avrenim Developments Limited (a company 100% owned by Avrenim Group Limited - the parent of Avrenim Facilities Management Limited) is owed £561,803 (2023: £1,281,922).
During the year, the company undertook transactions with Helios Distribution Limited, a company whom the directors (Simon Mattravers & John Newberry) are also directors. An amount totalling £109,061 (included in other borrowings at 31 December 2023) which was due to Helios Distribution Limited was deemed no longer due. An amount advanced by the company to Helios Distribution Limited totalling £101,297 was deemed no longer recoverable. The company purchased stock from Helios Distribution Limited for £295,000.
During the year ended 31 December 2024, a loan of £100,000 was made to John Newberry, a director of the company. At 31 December 2024, the outstanding balance owed by the director was £100,000 (2023: £nil). The balance is included within other debtors. The loan is interest free and repayable on demand. Subsequent to the year end, the loan was repaid in full on 30 September 2025.
14.
Audit Information
The auditor's report on the accounts of
Avrenim Facilities Management Limited
for the year ended 31 December 2024 was unqualified.
The auditor's report was signed by
Michael Buxton
(Senior Statutory Auditor)
for and on behalf of
Mitchell Charlesworth (Audit) Limited
, Statutory Auditor.
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Suites C, D, E & F 14th Floor The Plaza
100 Old Hall Street
Liverpool
L3 9QJ
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