1.
General Information
Avrenim Developments Limited is a private company limited by shares incorporated in England and Wales. The registered office is 16 Vesty Business Park, Vesty Road, Bootle, England, 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. A letter of support has been obtained from the company’s parent company Avrenim Group Limited confirming that the intercompany loans to the value of £1,690,314 will not be demanded in full for at least a period of 12 months period from the balance sheet date. Post year end the directors have made the decision to streamline the business to ensure it is running from an affordable cost base. At the date of signing the accounts no ultimate decision has been made, but the two considerations are, the business continues trading as it is or the trade and assets are hived up to another group company to save on overall operational costs. As the decision is yet to be decided upon, the financial statements continue at this time to be prepared on the going concern basis. A decision on this is expected within the next twelve months following the signing of the audit report, therefore this situation indicates that a material uncertainty exists that may cast doubt on the company’s ability to continue as a going concern.
Avrenim Developments Ltd
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:
| Plant & Machinery |
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| 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.
Financial Instruments
2.6.
Financial Instruments - continued
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
...CONTINUED
Avrenim Developments Ltd
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
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.
2.7.
Taxation
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.
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.
2.8.
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.
Avrenim Developments Ltd
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
2.9.
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.
2.10.
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.
2.11.
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
Average number of employees, including directors, during the year was: NIL (2023: NIL)
Avrenim Developments Ltd
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
4.
Tangible Assets
| Plant & Machinery | Computer Equipment | Total | |
|---|---|---|---|
| £ | £ | £ | |
| Cost | |||
| As at 1 January 2024 |
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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.
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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6.
Creditors: Amounts Falling Due Within One Year
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Trade creditors |
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| Other taxes and social security |
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| Other creditors |
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| Overdraft | - |
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| Accruals and deferred income |
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| Amounts owed to group undertakings |
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Avrenim Developments Ltd
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
7.
Secured Creditors
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 1226 9300 0002 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 1226 9393 0001 dated 21 June 2021.
8.
Deferred Taxation
The provision for deferred tax is made up as follows:
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Accelerated capital allowances | - |
|
|
9.
Provisions for Liabilities
| Deferred Tax | Total | |
|---|---|---|
| £ | £ | |
| As at 1 January 2024 |
|
525 |
| Utilised |
( |
(525) |
Provisions for charges
Provisions for onerous contracts
The entity has recognised provisions in respect of onerous contracts where unavoidable costs of fulfilling the obligations exceed expected economic benefits.
These were assessed as onerous at the reporting date based on current market conditions and exit options.
Balances are disclosed in the below movements schedule:
|
2024
|
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£
|
||
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At 31 December 2023
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-
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Provided in year
|
144,919
|
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||
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At 31 December 2024
|
144,919
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|
The provisions are expected to be settled within 12 months of year end with discounting not material. No reimbursements are anticipated.
Avrenim Developments Ltd
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
11.
Other Commitments
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Not later than one year | - |
|
|
| - |
|
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12.
Ownership of company
The company is a wholly owned subsidiary of Avrenim Group Ltd, a company registered in England. Avrenim Group Ltd is the ultimate parent company.
13.
Audit Information
The auditor’s information was unqualified, however we draw your attention to note 2.2 in the financial statements, which indicates that the directors are in discussions with regards to the future of the business. At this stage no ultimate decision has been made, but the two considerations are, the business continues trading as it is for the foreseeable future or the trade and assets are hived up to another group company to save on overall operational costs. As a decision is yet to be decided upon, the financial statements continue at this time to be prepared on the going concern basis. A decision on this is expected within the next twelve months following the signing of the audit report, therefore this situation indicates a material uncertainty exists that may cast doubt on the company’s ability to continue as going concern.
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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