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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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FIRST ASSET FINANCE LIMITED |
REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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FIRST ASSET FINANCE LIMITED |
FIRST ASSET FINANCE LIMITED (REGISTERED NUMBER: 01650495) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 6 |
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Income Statement | 10 |
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Other Comprehensive Income | 11 |
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Balance Sheet | 12 |
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Statement of Changes in Equity | 13 |
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Cash Flow Statement | 14 |
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Notes to the Cash Flow Statement | 15 |
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Notes to the Financial Statements | 16 |
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FIRST ASSET FINANCE LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Stag Gates House |
63/64 The Avenue |
Southampton |
Hampshire |
SO17 1XS |
FIRST ASSET FINANCE LIMITED (REGISTERED NUMBER: 01650495) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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The directors present their strategic report for the year ended 30 September 2021. |
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REVIEW OF BUSINESS |
The directors are satisfied with the results of the year, considering the impact of the UK economy as a whole of the |
continuing COVID-19 pandemic. The directors took the decision to remain fully open throughout the lockdown period to support its client base and the company did not take any of the support measures or loan packages available through the various government schemes. Costs were significantly reduced during the year as a result of switching to a hybrid working model. Commission income for the year was £357,699 (2020: £265,570) despite the difficult trading conditions in the UK. |
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The business was also successful in winning a number of new client mandates towards the end of the financial year which will bring improved results in the 2021 period. |
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The company has levied a management charge on First Asset Rental Limited of £57,224 for the year (2020: £100,000), reflecting the support of the directors to the company and a final share of the overheads of running the office which was shared with the company. |
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The directors consider levels of cash flow and net current ratio to be the company's key financial performance indicators. Cash level has decreased this year by £42,554. This has resulted in a current ratio which is now 1.86 (2020: 2.28). Despite this, the company is still in a good liquidity position and the directors are confident that with their continuing prudent management, the cash levels and net current ratio of the company will be maintained. |
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The directors have decided that no dividends will be paid (2020: £nil). |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The company's businesses operate in a competitive market that can be subject to rapid change. Its products and services are affected by changing customer behaviour. A change in the market, and the way equipment is financed could significantly affect the company's results. However, such change provides opportunities for the company to demonstrate its expertise and understanding of the complexity affecting the asset finance marketplace to provide the solution accordingly. Over the years the company has been able to maintain good relationships with their customers and suppliers which help improve long term business prospects. |
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FIRST ASSET FINANCE LIMITED (REGISTERED NUMBER: 01650495) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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SECTION 172(1) STATEMENT |
The board of directors of First Asset Finance Plc consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a)-(f) of the Act) in the decisions taken during the year ended 30 September 2021. |
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Our plan was designed to have a long-term beneficial impact on the company and to contribute to its success in delivering a high quality of service across all of our business divisions. |
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Our team members are fundamental to the delivery of our plan. We aim to be a responsible employer in our approach to the pay and benefits our team members receive. The health, safety and well-being of our team members is one of our primary considerations in the way we do business. |
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Engagement with suppliers and customers is key to our success. We meet with our major partners regularly throughout the year and take the appropriate action, when necessary, to prevent involvement in modern slavery, corruption, bribery and breaches of competition law. |
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Our plan took into account the impact of the company's operations on the community and environment and our wider social responsibilities, and in particular how we comply with environmental legislation and pursue waste-saving opportunities and react promptly to local community concerns. |
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As the board of directors, our intention is to behave responsibly and ensure that the management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours and in doing so, will contribute to the delivery of our plan. The intention is to nurture our reputation, through both the construction and delivery of our plan, that reflects our responsible behaviour. |
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As the board of directors, our intention is to behave responsibly towards our shareholders and treat them fairly and equally, so they too may benefit from the successful delivery of our plan. |
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FINANCIAL INSTRUMENTS |
The company's principal financial instruments are cash and bank balances and intercompany and connected company loans. |
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The company maintains a positive cash position and manages its borrowing requirements to minimise its exposure to fluctuations in interest rates. It has financial controls in place to monitor liquidity. The credit risk associated with cash and borrowings is low as the counterparties have reasonable credit ratings. |
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The directors consider the company faces the usual pricing risk of any other company operating in a competitive, commercial environment. |
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ON BEHALF OF THE BOARD: |
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28 April 2022 |
FIRST ASSET FINANCE LIMITED (REGISTERED NUMBER: 01650495) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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The directors present their report with the financial statements of the company for the year ended 30 September 2021. |
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CHANGE OF NAME |
The company changed its name from First Asset Finance Plc to First Asset Finance Limited by adopting new Articles of Association with a special resolution on 9 August 2021. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of equipment leasing, receivables financing, structured finance and trading in assets for leasing. |
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DIVIDENDS |
No dividends will be distributed for the year ended 30 September 2021. |
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FUTURE DEVELOPMENTS |
The directors aim to maintain the management policies which have resulted in the company's performance in recent years. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2020 to the date of this report. |
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DISCLOSURE IN THE STRATEGIC REPORT |
A review of the business including the principal risks and uncertainties facing the company is described in the Strategic Report. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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. |
FIRST ASSET FINANCE LIMITED (REGISTERED NUMBER: 01650495) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FIRST ASSET FINANCE LIMITED |
PREVIOUSLY KNOWN AS FIRST ASSET FINANCE PLC |
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Opinion |
We have audited the financial statements of First Asset Finance Limited (the 'company') for the year ended 30 September 2021 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The 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). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 September 2021 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. |
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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 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. |
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Conclusions relating to going concern |
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. |
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Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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Our 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. |
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In connection with our audit of the financial statements, 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 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. |
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Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FIRST ASSET FINANCE LIMITED |
PREVIOUSLY KNOWN AS FIRST ASSET FINANCE PLC |
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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 Report of the Directors. |
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We have nothing to report in respect of the following matters where 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. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FIRST ASSET FINANCE LIMITED |
PREVIOUSLY KNOWN AS FIRST ASSET FINANCE PLC |
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Auditors' 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 a Report of the Auditors 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. |
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The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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Extent to which the audit was considered capable of detecting irregularities, including fraud |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
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The engagement partner ensured that the engagement team collectively had the appropriate competence,
capabilities, and skills to identify or recognise non-compliance with applicable laws and regulations. |
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We identified the laws and regulations applicable to the company through discussions with directors and other
management, and from our commercial knowledge and experience. |
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We focused on specific laws and regulations which we considered may have a direct material effect on the
financial statements or the operations of the company, such as the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. |
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We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
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We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge
of actual, suspected, and alleged fraud; and |
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considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and
regulations. |
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Audit response to risks identified |
To address the risk of fraud through management bias and override of controls, we: |
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performed analytical procedures to identify any unusual or unexpected relationships; |
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tested journal entries to identify unusual transactions; |
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assessed whether judgements and assumptions made in determining the accounting estimates (i.e., depreciation)
were indicative of potential bias; and |
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investigated the rationale behind significant or unusual transactions. |
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In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
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agreeing financial statement disclosures to underlying supporting documentation; |
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enquiring of management as to actual and potential litigation and claims; and |
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reviewing correspondence with HMRC, relevant regulators and the company's legal advisors, where available |
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There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
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Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FIRST ASSET FINANCE LIMITED |
PREVIOUSLY KNOWN AS FIRST ASSET FINANCE PLC |
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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 Report of the Auditors. |
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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 2006. Our 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 a Report of the Auditors 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. |
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for and on behalf of
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Stag Gates House |
63/64 The Avenue |
Southampton |
Hampshire |
SO17 1XS |
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FIRST ASSET FINANCE LIMITED (REGISTERED NUMBER: 01650495) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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2021 | 2020 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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OPERATING LOSS and |
LOSS BEFORE TAXATION | ( |
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Tax on loss | 6 | ( |
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LOSS FOR THE FINANCIAL YEAR | ( |
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FIRST ASSET FINANCE LIMITED (REGISTERED NUMBER: 01650495) |
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OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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2021 | 2020 |
Notes | £ | £ |
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LOSS FOR THE YEAR | ( |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
( |
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( |
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FIRST ASSET FINANCE LIMITED (REGISTERED NUMBER: 01650495) |
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BALANCE SHEET |
30 SEPTEMBER 2021 |
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2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
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CURRENT ASSETS |
Debtors | 8 |
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Prepayments and accrued income |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 9 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
10 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 12 |
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Capital redemption reserve | 13 |
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Retained earnings | 13 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
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FIRST ASSET FINANCE LIMITED (REGISTERED NUMBER: 01650495) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
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Balance at 1 October 2019 |
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Changes in equity |
Total comprehensive income | - | ( |
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Balance at 30 September 2020 |
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Changes in equity |
Total comprehensive income | - | ( |
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Balance at 30 September 2021 |
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FIRST ASSET FINANCE LIMITED (REGISTERED NUMBER: 01650495) |
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CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
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Net cash from operating activities | ( |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
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Sale of fixed asset investments |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
Movements in inter group loans |
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Movements in related company |
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Amount introduced by directors | 100 | - |
Net cash from financing activities |
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Decrease in cash and cash equivalents | ( |
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Cash and cash equivalents at beginning of
year |
2 |
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273,147 |
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Cash and cash equivalents at end of year | 2 | 201,358 | 243,912 |
FIRST ASSET FINANCE LIMITED (REGISTERED NUMBER: 01650495) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2021 | 2020 |
£ | £ |
Loss before taxation | ( |
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Depreciation charges |
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Profit on disposal of fixed assets |
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( |
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(140,058 | ) | (167,394 | ) |
(Increase)/decrease in trade and other debtors | ( |
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(Decrease)/increase in trade and other creditors | ( |
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Cash generated from operations | ( |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
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Year ended 30 September 2021 |
30.9.21 | 1.10.20 |
£ | £ |
Cash and cash equivalents | 201,358 | 243,912 |
Year ended 30 September 2020 |
30.9.20 | 1.10.19 |
£ | £ |
Cash and cash equivalents | 243,912 | 273,147 |
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3. | ANALYSIS OF CHANGES IN NET FUNDS |
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At 1.10.20 | Cash flow | At 30.9.21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 243,912 | (42,554 | ) | 201,358 |
243,912 | ( |
) | 201,358 |
Total | 243,912 | (42,554 | ) | 201,358 |
FIRST ASSET FINANCE LIMITED (REGISTERED NUMBER: 01650495) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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1. | STATUTORY INFORMATION |
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First Asset Finance Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of listed investments which are shown at fair value. The financial statements are shown in sterling and rounded to the nearest £. |
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Going concern |
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These financial statements have been prepared on the going concern basis on the directors assessment that the company will be financially supported by the group companies. |
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Significant judgements and estimates |
In the application of the company's accounting policies, the management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions may differ from these estimates. |
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The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
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Key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements includes deferred tax asset and deferred income provisions on possible clawback of commission. |
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Deferred tax asset of £75,266 relating to tax losses have been recognised in these financial statements on the basis that the directors are confident that the company will make sufficient future profits to utilise the losses. |
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Commission income has been recognised in these financial statements which may be subject to clawback, depending on the terms of the agreement. At the date of approving these accounts, the directors considered that it is unlikely that this clawback will occur as they have received no indication that there has been early terminations |
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Income recognition |
Fees and commissions are earned from services provided to clients. Fees and commissions earned on completion of a transaction is recognised when the event occurs. Fees and commissions that are provided over a period of time are recognised over the period in which the service is provided. |
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Tangible fixed assets |
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Improvements to property | - |
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Fixtures, fittings and equipment | - |
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Financial instruments |
Financial assets and financial liabilities are recognised in the company's balance sheet when the company becomes a party to the contractual provisions of the instruments. |
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FIRST ASSET FINANCE LIMITED (REGISTERED NUMBER: 01650495) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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. |
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Taxation |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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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. |
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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. |
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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. |
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Fixed asset investments |
Fixed asset investments are carried in the accounts at market value, with movements in the value recognised in the income statement |
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Loans and receivables |
Loans and receivables are measured at amortised costs using the effective interest method, less any impairment. |
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Trade payables |
Trade payables are not interest bearing and are stated at their nominal value. |
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3. | TURNOVER |
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The turnover and loss before taxation are attributable to the one principal activity of the company. |
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An analysis of turnover by class of business is given below: |
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2021 | 2020 |
£ | £ |
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|
FIRST ASSET FINANCE LIMITED (REGISTERED NUMBER: 01650495) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
|
4. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2021 | 2020 |
|
Management and marketing | 2 | 1 |
Administration | 2 | 2 |
|
|
|
2021 | 2020 |
£ | £ |
Directors' remuneration |
|
|
|
The total staff cost and average number of employees analysis above do not include the three directors of the company whose services are invoiced to First Asset Finance Plc. During the year this amounted to £1,000 (2020: £750) for Charkella Limited and £150,000 (2020: £150,000) for Sherven Limited. No fees has been paid to MCV Limited during the current or previous year. |
|
Other pension costs above include £26,845 (2020: £30,656) of private medical and travel insurance provided for the directors. |
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5. | OPERATING LOSS |
|
The operating loss is stated after charging/(crediting): |
|
2021 | 2020 |
£ | £ |
Depreciation - owned assets |
|
|
Profit on disposal of fixed assets |
|
( |
) |
Auditors' remuneration |
|
|
Foreign exchange differences |
|
|
Rent payable under operating lease |
|
|
Management charge | ( |
) | ( |
) |
Pension costs - defined contribution scheme |
|
|
|
6. | TAXATION |
|
Analysis of the tax credit |
The tax credit on the loss for the year was as follows: |
2021 | 2020 |
£ | £ |
Deferred tax | ( |
) | ( |
) |
Tax on loss | ( |
) | ( |
) |
|
UK corporation tax has been charged at 25% (2020 - 19%). |
FIRST ASSET FINANCE LIMITED (REGISTERED NUMBER: 01650495) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
|
6. | TAXATION - continued |
|
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2021 | 2020 |
£ | £ |
Loss before tax | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of
(2020 - |
( |
) |
( |
) |
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances |
|
- |
Deferred tax asset adjustment as a result of change in tax rate | (17,976 | ) | - |
Total tax credit | (44,660 | ) | (31,230 | ) |
|
The rate of corporation tax has been increased to 25% from 1 April 2023 following the enactment of the Finance Act 2021. |
|
7. | TANGIBLE FIXED ASSETS |
Fixtures, |
Improvements | fittings |
to | and |
property | equipment | Totals |
£ | £ | £ |
COST |
At 1 October 2020 |
|
|
|
Additions |
|
|
|
Disposals | ( |
) | ( |
) | ( |
) |
At 30 September 2021 |
|
|
|
DEPRECIATION |
At 1 October 2020 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30 September 2021 |
|
|
|
NET BOOK VALUE |
At 30 September 2021 |
|
|
|
At 30 September 2020 |
|
|
|
FIRST ASSET FINANCE LIMITED (REGISTERED NUMBER: 01650495) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
|
8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Related company loans | 260 | 103,323 |
Deferred tax asset |
|
|
|
|
|
9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Corporation tax |
|
|
Social security and other taxes |
|
|
VAT | 8,637 | 5,456 |
Other creditors |
|
|
Directors' current accounts | 2,790 | 2,690 |
Accruals and deferred income |
|
|
|
|
|
10. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2021 | 2020 |
£ | £ |
Related company loans | - | 3,112 |
|
11. | DEFERRED TAX |
£ |
Balance at 1 October 2020 | ( |
) |
Credit to Income Statement during year | ( |
) |
Deferred tax asset on losses |
Balance at 30 September 2021 | ( |
) |
|
12. | CALLED UP SHARE CAPITAL |
|
Allotted and issued: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
|
Share capital 1 | £1 | 50,000 | 50,000 |
FIRST ASSET FINANCE LIMITED (REGISTERED NUMBER: 01650495) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
|
13. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
|
At 1 October 2020 |
|
|
272,510 |
Deficit for the year | ( |
) | ( |
) |
At 30 September 2021 |
|
|
172,938 |
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14. | ULTIMATE PARENT COMPANY |
|
At the year end the parent undertaking of the smallest and the largest group of undertakings for which group financial statements are drawn up and of which the company is a member is FAF Holdings Limited, a company incorporated in England and Wales with registered office at Capital Tower, 91 Waterloo Road, London, SE1 8RT, United Kingdom. |
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Copies of the group financial statements of FAF Holdings Limited are available at Companies House, Crown Way, Cardiff, CF14 3UZ. |
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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. |
|
|
2021 | 2020 |
£ | £ |
Fees |
|
|
|
|
2021 | 2020 |
£ | £ |
Amount due from related party |
|
|