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REGISTERED NUMBER: 03151043 (England and Wales) |
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 |
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FOR |
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AZULE LIMITED |
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REGISTERED NUMBER: 03151043 (England and Wales) |
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 |
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FOR |
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AZULE LIMITED |
AZULE LIMITED (REGISTERED NUMBER: 03151043) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2017 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 3 |
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Report of the Independent Auditors | 5 |
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Income Statement | 7 |
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Other Comprehensive Income | 8 |
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Balance Sheet | 9 |
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Statement of Changes in Equity | 10 |
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Cash Flow Statement | 11 |
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Notes to the Cash Flow Statement | 12 |
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Notes to the Financial Statements | 13 |
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AZULE LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2017 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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SENIOR STATUTORY AUDITOR: |
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AUDITORS: |
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Statutory Auditors |
E3 The Premier Centre |
Abbey Park |
Romsey |
Hampshire |
SO51 9DG |
AZULE LIMITED (REGISTERED NUMBER: 03151043) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2017 |
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The directors present their strategic report for the year ended 30 June 2017. |
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REVIEW OF BUSINESS |
Azule continues to be the predominant provider of finance for the Broadcast and Media Industries across Europe, |
arranging just under £60 million of equipment finance during the year. The European market continues to be important |
to our business and is where we set ourselves apart, and ahead, of our competitors with particular growth areas in Spain |
and France. This has contributed to the addition of a number of industry named manufacturers who see the added value |
that Azule can provide over and above our competitors. |
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The company has continued to invest significantly in the development of its own book lending. This continues to be the |
largest lender by volume of all of its finance company options. This year we managed to lend on average over £1 million |
a month, as such total own book lending increased from £9 million to £12 million. Brokerage lending was evenly spread |
across the market with three lessors funding nearly £5 million each and the rest being financed with a further 32 lessors. |
This shows, as previously commented upon, the diversity and options available in the asset finance market with interest |
rates being driven down by too many finance companies looking for a UK volume that is not increasing at the same rate |
as additional funds becoming available. |
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The company continued to increase its exposure to the fairground and attraction industry to an extent that the directors |
have, post year end, introduced a cap on the business so it will not exceed 30% of the total capital balance outstanding. |
The own book portfolio on both sectors continues to perform above expectation with minimal bad debt. |
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The return on capital has dropped to 15.2% from 20.3%, which reflects the squeeze in interest rates throughout the |
business sector we operate in. Nevertheless, the company has seen an increase in profit before tax to £838,169 from last |
year's result of £685,613, representing an increase of 22.2%. These great results are not only achieved by the increased |
volumes as mentioned above but also by the excellent performance of a dedicated team of staff to which we extend our |
thanks. |
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The company continues to trade with no formal banking facility and is still well supported by its panel of block |
discounters. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risk and uncertainties last year centred around the effect of UK passporting of financial services across |
Europe and the possibility of a hard Brexit, though this seems less severe with the agreement in principle of transitional |
status until December 2020. In addition we believe we are in strong position to mitigate any fall out as we operate with |
individual Irish and Germany entities. Therefore the main risk remains around the performance of the UK economy and |
its ability to maintain control of inflation with interest policies without causing an economic downturn. We currently |
have the weakest economy of the G7 and as such any downturn would have a significant effect on the broadcast and |
television industries. |
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ON BEHALF OF THE BOARD: |
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AZULE LIMITED (REGISTERED NUMBER: 03151043) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2017 |
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The directors present their report with the financial statements of the company for the year ended 30 June 2017. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the provision of hire purchase and leasing |
arrangements. |
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DIVIDENDS |
Interim dividends per share were paid as follows: |
5 | - 30 September 2016 |
5 | - 30 December 2016 |
5 | - 30 March 2017 |
5 | - 30 June 2017 |
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The directors recommend that no final dividend be paid. |
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The total distribution of dividends for the year ended 30 June 2017 will be £
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FUTURE DEVELOPMENTS |
Since the year end the company has agreed significant contracts with large manufactures, including the exclusive |
provision of finance for Europe's largest distributor of audio visual equipment, a market that dwarfs that of Broadcast |
and Television. These contracts will take time to produce results, however, initial forecasted volumes from the |
manufacturers look promising and if this materialises, the directors are hopeful that the benefits to the company will be |
significant. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2016 to the date of this report. |
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FINANCIAL INSTRUMENTS |
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities |
which are conducted predominantly in sterling. The company does not enter into any formal hedging arrangements. |
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POLITICAL DONATIONS AND EXPENDITURE |
No political donations were made by the company. |
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DISCLOSURE IN THE STRATEGIC REPORT |
A review of business including the principal risks and uncertainties facing the company is described in the Strategic |
Report. |
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AZULE LIMITED (REGISTERED NUMBER: 03151043) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2017 |
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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), including Financial Reporting Standard 102 'The |
Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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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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. |
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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 or she ought to have |
taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the |
company's auditors are aware of that information. |
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AUDITORS |
TBW will be deemed to continue in office under s487(2) of the Companies Act 2006. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AZULE LIMITED |
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Opinion |
We have audited the financial statements of Azule Limited (the 'company') for the year ended 30 June 2017 on pages |
seven to twenty two. 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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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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In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 30 June 2017 and of its profit 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 |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to |
you where: |
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is not
appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast
significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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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 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, 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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Opinion on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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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 |
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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 |
AZULE LIMITED |
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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: |
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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. |
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Our 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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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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for and on behalf of
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Statutory Auditors |
E3 The Premier Centre |
Abbey Park |
Romsey |
Hampshire |
SO51 9DG |
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AZULE LIMITED (REGISTERED NUMBER: 03151043) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2017 |
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2017 | 2016 |
Notes | £ | £ |
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TURNOVER |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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1,331,036 | 1,043,166 |
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Other operating income | 3 |
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OPERATING PROFIT | 6 |
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Interest receivable and similar income | 7 |
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1,372,747 | 1,100,655 |
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Interest payable and similar expenses | 8 |
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PROFIT BEFORE TAXATION |
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Tax on profit | 9 |
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PROFIT FOR THE FINANCIAL YEAR |
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AZULE LIMITED (REGISTERED NUMBER: 03151043) |
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OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2017 |
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2017 | 2016 |
Notes | £ | £ |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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AZULE LIMITED (REGISTERED NUMBER: 03151043) |
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BALANCE SHEET |
30 JUNE 2017 |
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2017 | 2016 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
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Investments | 12 |
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CURRENT ASSETS |
Stocks | 13 |
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Debtors | 14 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 15 |
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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 |
16 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 21 |
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Retained earnings | 22 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors on
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AZULE LIMITED (REGISTERED NUMBER: 03151043) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2017 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 July 2015 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 30 June 2016 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 30 June 2017 |
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AZULE LIMITED (REGISTERED NUMBER: 03151043) |
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CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2017 |
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2017 | 2016 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
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Interest paid | ( |
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Interest element of hire purchase payments
paid |
( |
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Tax paid | ( |
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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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Purchase of fixed asset investments | (21,228 | ) | - |
Sale of tangible fixed assets |
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Interest received |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
Increase in block funding |
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Hire purchase agreements |
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Amount introduced by directors | (173,685 | ) | 76,899 |
Amount withdrawn by directors | 6,208 | - |
Equity dividends paid | ( |
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Net cash from financing activities |
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(Decrease)/increase in cash and cash equivalents | ( |
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Cash and cash equivalents at beginning of
year |
2 |
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604,321 |
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Cash and cash equivalents at end of year | 2 | 640,265 | 885,390 |
AZULE LIMITED (REGISTERED NUMBER: 03151043) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2017 |
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1. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
2017 | 2016 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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Profit on disposal of fixed assets | ( |
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Finance costs | 534,578 | 415,042 |
Finance income | (282 | ) | (1,053 | ) |
1,402,487 | 1,116,392 |
Decrease/(increase) in stocks |
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( |
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Increase 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 June 2017 |
30.6.17 | 1.7.16 |
£ | £ |
Cash and cash equivalents | 640,265 | 885,390 |
Year ended 30 June 2016 |
30.6.16 | 1.7.15 |
£ | £ |
Cash and cash equivalents | 885,390 | 604,321 |
AZULE LIMITED (REGISTERED NUMBER: 03151043) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2017 |
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1. | STATUTORY INFORMATION |
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Azule Limited is a
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registered number and registered office address can be found on the Company Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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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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The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial |
statements are described below. |
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Finance leases and advances to customers |
The company reviews its own book debtors to assess impairment on a monthly basis, and makes a provision for |
bad debt as necessary. In determining whether a provision is required the company makes judgements as to |
whether there is any indication that any individual lease or loan agreement is likely to default. This involve the |
review of any arrears or evidence of a deterioration of the customer's financial position. The value of any |
security held and the value of the assets leased are also taken into account. |
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Turnover |
Turnover represents net invoiced sale of goods, fees and commissions earned, and interest receivable from |
finance leases and loans, excluding value added tax where applicable. |
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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 |
Depreciation is provided by the Company to write off the cost of fixed tangible assets over their estimated useful |
economic lives on the straight line basis at the following rate: |
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Motor vehicle - 25% |
Office equipment - 25% |
Leased assets - length of leases |
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Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow |
moving items. |
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AZULE LIMITED (REGISTERED NUMBER: 03151043) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2017 |
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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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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the |
balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at |
the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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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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Leases and loans receivables |
Assets leased to customers under agreements which transfer substantially all the risks and rewards of ownership, |
other than legal title, are classified as finance leases. Gross earnings receivable under finance leases are |
allocated to accounting periods using the net investment method to give a constant periodic rate of return on the |
company's net cash investment and are included in turnover. Finance lease receivable represent the company's |
net investment in the leases. |
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All other leases are classified as operating leases. Rentals receivable under operating leases are recognised on a |
straight line basis and are included in other operating income. Assets held for the purpose of operating leases are |
capitalised and depreciated over the period of the lease. |
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Interest receivable from loan agreements is recognised using the effective interest rate method, using the rate as |
stated in the terms of the agreement, adjusted for any premiums, discounts as well as fees and charges associated |
with the loan. |
AZULE LIMITED (REGISTERED NUMBER: 03151043) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2017 |
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2. | ACCOUNTING POLICIES - continued |
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Trade and other debtors |
Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost |
using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of |
discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad |
and doubtful debts. |
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Impairment of financial assets |
Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets |
are considered to be impaired when there is objective evidence that, as a result of one or more events that |
occurred after the initial recognition of the financial asset, the estimated future cash flows of the investments |
have been affected. Objective evidence of impairment could include: |
- significant financial difficulties of the customer; |
- breach of contract, such as a default or delinquency in interest or principal payments; or |
- it becoming probable that the borrower will enter bankruptcy or financial re-organisation. |
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Assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective |
basis. Objective evidence of impairment for a portfolio of receivables could include the company's past |
experience of collective payments, an increase in the number of delayed payments in the portfolio as well as |
observable changes in the economic conditions that correlate the default on receivables. |
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For financial assets carried at amortised cost, the amount of impairment loss recognised is the difference between |
the asset's carrying value and the present value of estimated future cash flows, discounted at the financial asset's |
original effective interest rate. The impairment loss is recognised in the profit or loss. If in a subsequent period, |
the amount of impairment loss decreases and the decrease can be related objectively to an event occurring after |
the impairment was recognised, the previous recognised impairment loss is reversed through the profit or loss to |
the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what |
the amortised cost would have been had the impairment not been recognised. |
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For financial assets carried at cost, the amount of impairment is measured as the difference between the asset's |
carrying value and the present value of the estimated future cash flows discounted at the current market rate of |
return for a similar financial asset. Such impairment would not be reversed in subsequent periods. |
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Trade and other creditors |
Trade and other creditors are initially recognised at the transaction price and thereafter stated at amortised cost |
using the effective interest method except where the effect of discounting would be immaterial, in which case, |
they are state at cost. |
|
Interest bearing borrowings |
Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to |
initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between the |
initially recognised and redemption value being recognised in the statement of comprehensive income over the |
period of the borrowings, together with any interest and fees payable, using the effective interest method. |
|
3. | OTHER OPERATING INCOME |
2017 | 2016 |
£ | £ |
Operating lease rentals | - | 26,342 |
Exchange gains | 41,429 | 30,094 |
41,429 | 56,436 |
AZULE LIMITED (REGISTERED NUMBER: 03151043) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2017 |
|
4. | EMPLOYEES AND DIRECTORS |
2017 | 2016 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
The average monthly number of employees during the year was as follows: |
2017 | 2016 |
|
Management | 3 | 3 |
Sales & support | 13 | 10 |
Administration & finance | 5 | 3 |
|
|
|
5. | DIRECTORS' EMOLUMENTS |
2017 | 2016 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
|
Information regarding the highest paid director is as follows: |
2017 | 2016 |
£ | £ |
Emoluments etc |
|
|
Pension contributions to money purchase schemes |
|
|
|
6. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
2017 | 2016 |
£ | £ |
Depreciation - owned assets |
|
|
Profit on disposal of fixed assets | ( |
) |
|
Auditors' remuneration |
|
|
Taxation compliance services |
|
|
Foreign exchange differences | ( |
) | ( |
) |
Income from HP, finance leases & loans | ( |
) | ( |
) |
|
7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2017 | 2016 |
£ | £ |
Deposit account interest |
|
|
AZULE LIMITED (REGISTERED NUMBER: 03151043) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2017 |
|
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2017 | 2016 |
£ | £ |
Loan |
|
|
Hire purchase |
|
|
|
|
|
9. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2017 | 2016 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax |
|
( |
) |
Tax on profit |
|
|
|
UK corporation tax has been charged at 19.75% . |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is |
explained below: |
|
2017 | 2016 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
|
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Movements in general bad debt provisions | 7,900 | 3,823 |
Movements in pension accruals | ( |
) |
|
|
Deferred tax | 19,726 | (1,366 | ) |
Total tax charge | 172,338 | 144,985 |
|
10. | DIVIDENDS |
2017 | 2016 |
£ | £ |
Ordinary shares of £1 each |
Final |
|
|
Interim |
|
|
|
|
AZULE LIMITED (REGISTERED NUMBER: 03151043) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2017 |
|
11. | TANGIBLE FIXED ASSETS |
Fixtures |
& fittings | Motor |
& equipment | vehicles | Totals |
£ | £ | £ |
COST |
At 1 July 2016 |
|
|
|
Additions |
|
|
|
At 30 June 2017 |
|
|
|
DEPRECIATION |
At 1 July 2016 |
|
|
|
Charge for year |
|
|
|
At 30 June 2017 |
|
|
|
NET BOOK VALUE |
At 30 June 2017 |
|
|
|
At 30 June 2016 |
|
|
|
|
Included in fixed assets are motor vehicles purchased under hire purchase agreements with a net book value of |
£135,506 (2016:£0) |
|
12. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
Additions |
|
At 30 June 2017 |
|
NET BOOK VALUE |
At 30 June 2017 |
|
|
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
|
Associated company |
|
|
Registered office: 47877 Willich, Weiderichstabe 13, Geshaaftsanschrift |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
£ |
Aggregate capital and reserves |
|
Loss for the period/year | ( |
) |
|
In December 2016, 50% of the ordinary shareholding in Azule Finance GmbH was acquired for €25,000. This |
was settled by way of a set off against the loan outstanding from Azule Finance GmbH. |
AZULE LIMITED (REGISTERED NUMBER: 03151043) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2017 |
|
13. | STOCKS |
2017 | 2016 |
£ | £ |
Stocks |
|
|
|
14. | DEBTORS |
2017 | 2016 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
|
|
Amounts receivable in respect of finance
leases |
|
|
Other debtors |
|
|
Directors' loan accounts | 190,793 | 23,024 |
Tax |
|
|
VAT |
|
|
Deferred tax asset |
|
|
Prepayments and accrued income |
|
|
|
|
|
Amounts falling due after more than one year: |
Amounts receivable in respect of finance
leases |
|
|
|
Aggregate amounts |
|
|
|
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2017 | 2016 |
£ | £ |
Other loans (see note 17) |
|
|
Hire purchase contracts (see note 18) |
|
|
Trade creditors |
|
|
Tax |
|
|
Social security and other taxes |
|
|
VAT | 433,412 | - |
Other creditors |
|
|
Directors' current accounts | 292 | - |
Accruals and deferred income |
|
|
|
|
|
16. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2017 | 2016 |
£ | £ |
Other loans (see note 17) |
|
|
Hire purchase contracts (see note 18) |
|
|
|
|
AZULE LIMITED (REGISTERED NUMBER: 03151043) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2017 |
|
17. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2017 | 2016 |
£ | £ |
Amounts falling due within one year or on demand: |
Other loans |
|
|
|
Amounts falling due between one and two years: |
Other loans - 1-2 years | 3,882,564 |
|
|
Amounts falling due between two and five years: |
Other loans - 2-5 years |
|
|
|
18. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
2017 | 2016 |
£ | £ |
Gross obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Finance charges repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Non-cancellable operating |
leases |
2017 | 2016 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
The company negotiated a new 5 year lease for its Datchet office premises in August 2016 at an annual rent |
commitment of £27,000. The previous lease had already expired at the year end and as such there was no |
commitment at the balance sheet date in 2016. |
AZULE LIMITED (REGISTERED NUMBER: 03151043) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2017 |
|
19. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2017 | 2016 |
£ | £ |
Other loans |
|
|
|
Other loans represents block discounting loans secured on finance lease receivables |
|
20. | DEFERRED TAX |
£ |
Balance at 1 July 2016 | ( |
) |
Charge to Income Statement during year |
|
Balance at 30 June 2017 | ( |
) |
|
21. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2017 | 2016 |
value: | £ | £ |
|
Ordinary | £1 | 10,000 | 10,000 |
|
22. | RESERVES |
Retained |
earnings |
£ |
|
At 1 July 2016 |
|
Profit for the year |
|
Dividends | ( |
) |
At 30 June 2017 |
|
|
23. | PENSION COMMITMENTS |
|
Pension contribution outstanding at the end of the year amounted to £2,594 (2016: £8,942). |
|
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
|
The following advances and credits to a director subsisted during the years ended 30 June 2017 and |
30 June 2016: |
|
2017 | 2016 |
£ | £ |
|
Balance outstanding at start of year |
|
|
Amounts advanced |
|
|
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
|
|
AZULE LIMITED (REGISTERED NUMBER: 03151043) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2017 |
|
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued |
|
The loan to P J Savage has been provided free of interest but it is repayable on demand. |
|
25. | RELATED PARTY DISCLOSURES |
|
|
2017 | 2016 |
£ | £ |
Management fees |
|
|
Purchases |
|
|
Recharge of expenses | - | 552 |
Interest on loan | 9,357 | 9,898 |
Amount due from related party |
|
|
|
|
2017 | 2016 |
£ | £ |
Dividends |
|
|
Amount due from related party |
|
|
Amount due to related party |
|
|
|
26. | ULTIMATE CONTROLLING PARTY |
|
Ultimate controlling party is Peter Savage who is the majority shareholder and director of the company. |