COMPANY REGISTRATION NO. 05038793 (England and Wales)
APEX RESOURCES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
APEX RESOURCES LIMITED
COMPANY INFORMATION
Director
Mr O T Osazee
Secretary
Mr O T Osazee
Company number
05038793
Registered office
Apex House
Bridle Path
Watford
WD17 1UE
Auditor
UHY Hacker Young
Lanyon House
Mission Court
Newport
South Wales
United Kingdom
NP20 2DW
APEX RESOURCES LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
APEX RESOURCES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 1 -
The director presents the strategic report for the year ended 28 February 2021.
Fair review of the business
As a result of the Coronavirus pandemic and Brexit turnover decreased to £34,856,908 (2020: £49,975,924), and profit for the year before taxation decreased to £459,150 (2020: £677,719).
The company's net current assets increased to £2,670,247 (£2,284,954). Shareholders' funds increased to £2,746,999(2020: £2,386,566).
Brexit has led to labour shortages in the construction industry. This has led to increased labour costs and consequently increased charge rates. This has squeezed our margins on the supply of trades but we have maintained our margins on the supply of labour. The restriction on foreign labour coming to UK means that labour shortages are set to continue.
The Coronavirus pandemic had a significant impact on the business at the start of the financial year due to local and national lockdowns. The lockdowns resulted in the business being closed for 4 months which resulted in the decline in turnover noted above. Following the relaxation on restrictions in the construction industry we have seen the business get back to normal levels of trade.
Overall gross profit percentage decreased from 11.9% to 10.7%, this is the key measure of operating effectiveness; the decrease was due to factors (Brexit and Coronavirus) beyond our control. We benefited from the Coronavirus Job Retention Scheme and other Coronavirus funding totalling £560,453 which partially compensated for the lack of trade in lockdown.
Principal risks and uncertainties
The management of the business and the nature of the company's strategy are subject to a number of risks. The principal risks are:
General economic conditions
Demand for the company's services depends upon the general economy. The company seeks to maintain a competitive advantage by offering a high level of customer service.
Personnel risk
The company is a privately owned business and places great emphasis on recruiting and training high quality competent staff.
Changes to employment laws
The company has kept abreast of changes in employment law and works closely with its suppliers and customer to ensure full compliance with all current and prospective laws.
Key performance indicators
A key indicator is turnover levels, which is an indicator of market share. Turnover for the year was in line with management expectations as a result of the Coronavirus pandemic impact.
Mr O T Osazee
Director
22 November 2021
APEX RESOURCES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 2 -
The director presents his annual report and financial statements for the year ended 28 February 2021.
Principal activities
The principal activity of the company continued to be that of supply of labour to the construction industry.
Results and dividends
The results for the year are set out on page 7.
No interim dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr O T Osazee
Future developments
Despite the challenges caused by Brexit, management continue to focus on growth and suitable locations for new branches.
Auditor
UHY Hacker Young were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
APEX RESOURCES LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 3 -
On behalf of the board
Mr O T Osazee
Director
22 November 2021
APEX RESOURCES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF APEX RESOURCES LIMITED
- 4 -
Opinion
We have audited the financial statements of Apex Resources Limited (the 'company') for the year ended 28 February 2021 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 28 February 2021 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.
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
Auditor's
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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
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.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the director's r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
APEX RESOURCES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF APEX RESOURCES LIMITED
- 5 -
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 identifie
d
material misstatements in the strategic report and the director's
r
eport
.
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 director's remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's
r
esponsibilities
s
tatement, the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's 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 an auditor's report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
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:
-
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;
-
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the relevant sector;
-
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, including the Companies Act 2006;
-
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
-
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
-
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
APEX RESOURCES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF APEX RESOURCES LIMITED
- 6 -
To address the risk of fraud through management bias and override of controls, we:
-
performed analytical procedures to identify any unusual or unexpected relationships;
-
tested journal entries to identify unusual transactions;
-
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
-
investigated the rationale behind significant or unusual transactions.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial statements, 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.
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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 him in an auditor's report 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.
Mr John Griffiths (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
22 November 2021
Chartered Accountants
Statutory Auditor
Newport
South Wales
United Kingdom
APEX RESOURCES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 7 -
2021
2020
Notes
£
£
Turnover
3
34,856,908
49,975,924
Cost of sales
(31,140,303)
(44,043,538)
Gross profit
3,716,605
5,932,386
Administrative expenses
(3,749,194)
(5,056,972)
Other operating income
4
678,498
57,773
Operating profit
5
645,909
933,187
Interest receivable and similar income
8
2,462
Interest payable and similar expenses
9
(189,221)
(255,468)
Profit before taxation
459,150
677,719
Tax on profit
10
(98,717)
(161,852)
Profit for the financial year
360,433
515,867
The profit and loss account has been prepared on the basis that all operations are continuing operations.
APEX RESOURCES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 8 -
2021
2020
£
£
Profit for the year
360,433
515,867
Other comprehensive income
-
-
Total comprehensive income for the year
360,433
515,867
APEX RESOURCES LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2021
28 February 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
11
81,675
101,612
Current assets
Debtors
12
7,385,686
6,949,199
Cash at bank and in hand
31,306
183,788
7,416,992
7,132,987
Creditors: amounts falling due within one year
13
(4,746,745)
(4,848,033)
Net current assets
2,670,247
2,284,954
Total assets less current liabilities
2,751,922
2,386,566
Provisions for liabilities
Deferred tax liability
15
4,923
(4,923)
-
Net assets
2,746,999
2,386,566
Capital and reserves
Called up share capital
17
200
200
Profit and loss reserves
2,746,799
2,386,366
Total equity
2,746,999
2,386,566
The financial statements were approved and signed by the director and authorised for issue on 22 November 2021
Mr O T Osazee
Director
Company Registration No. 05038793
APEX RESOURCES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 March 2019
200
1,870,499
1,870,699
Year ended 29 February 2020:
Profit and total comprehensive income for the year
-
515,867
515,867
Balance at 29 February 2020
200
2,386,366
2,386,566
Year ended 28 February 2021:
Profit and total comprehensive income for the year
-
360,433
360,433
Balance at 28 February 2021
200
2,746,799
2,746,999
APEX RESOURCES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 11 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
89,378
1,481,488
Interest paid
(189,221)
(255,468)
Income taxes paid
(199,639)
(121,384)
Net cash (outflow)/inflow from operating activities
(299,482)
1,104,636
Investing activities
Purchase of tangible fixed assets
(9,183)
(9,436)
Net cash used in investing activities
(9,183)
(9,436)
Net (decrease)/increase in cash and cash equivalents
(308,665)
1,095,200
Cash and cash equivalents at beginning of year
(2,092,665)
(3,187,865)
Cash and cash equivalents at end of year
(2,401,330)
(2,092,665)
Relating to:
Cash at bank and in hand
31,306
183,788
Bank overdrafts included in creditors payable within one year
(2,432,636)
(2,276,453)
APEX RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 12 -
1
Accounting policies
Company information
Apex Resources Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Apex House, Bridle Path, Watford, WD17 1UE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he director has a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and rebates.
Revenue from
the rendering of
services is recognised by reference to the stage of completion
of the service transaction at the end of the reporting period provided that the outcome can be
estimated reliably. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
10% straight line
Plant and equipment
20% straight line
Equipment
20% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
APEX RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
1
Accounting policies
(Continued)
- 13 -
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.6
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
APEX RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
1
Accounting policies
(Continued)
- 14 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.7
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.9
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.10
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
APEX RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Trade debtors
The amounts recoverable from debtors are subject to uncertainty. The company has appropriate control procedures to manage the risk of debtor default. These procedures include credit worthiness checks and insurance policies. At each year-end the company assesses the likelihood of debtor default and makes provision for amounts which are considered to be irrecoverable.
3
Turnover and other revenue
2021
2020
£
£
Turnover analysed by class of business
Rendering of services
34,856,908
49,975,924
2021
2020
£
£
Other significant revenue
Interest income
2,462
-
Grants received (note 4)
560,453
4
Other operating income
2021
2020
£
£
Rent receivable
86,045
57,773
Coronavirus job retention scheme
517,953
-
Business support grants
42,500
-
Other
32,000
-
678,498
57,773
APEX RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 16 -
5
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(560,453)
Fees payable to the company's auditor for the audit of the company's financial statements
12,000
9,000
Depreciation of owned tangible fixed assets
29,120
32,589
Operating lease charges
310,080
176,525
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Administrative staff
64
75
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
2,403,430
2,885,836
Social security costs
252,923
329,596
Pension costs
48,838
57,913
2,705,191
3,273,345
7
Director's remuneration
2021
2020
£
£
Remuneration for qualifying services
8,100
11,186
8
Interest receivable and similar income
2021
2020
£
£
Interest income
Other interest income
2,462
APEX RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 17 -
9
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
56,243
113,784
Other finance costs:
Other
132,978
141,684
189,221
255,468
10
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
57,254
209,307
Adjustments in respect of prior periods
(9,668)
Total current tax
47,586
209,307
Deferred tax
Origination and reversal of timing differences
43,156
(47,455)
Adjustment in respect of prior periods
7,975
Total deferred tax
51,131
(47,455)
Total tax charge
98,717
161,852
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit before taxation
459,150
677,719
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
87,239
128,767
Tax effect of expenses that are not deductible in determining taxable profit
9,526
33,085
Adjustments in respect of prior years
(9,668)
Depreciation on assets not qualifying for tax allowances
2,149
Deferred tax adjustments in respect of prior years
7,975
Depreciation in excess of capital allowances
1,496
Taxation charge for the year
98,717
161,852
APEX RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 18 -
11
Tangible fixed assets
Leasehold improvements
Plant and equipment
Equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 March 2020
168,053
46,197
79,951
10,375
304,576
Additions
2,520
6,663
9,183
At 28 February 2021
168,053
48,717
86,614
10,375
313,759
Depreciation and impairment
At 1 March 2020
97,043
39,189
56,857
9,875
202,964
Depreciation charged in the year
13,396
4,248
10,976
500
29,120
At 28 February 2021
110,439
43,437
67,833
10,375
232,084
Carrying amount
At 28 February 2021
57,614
5,280
18,781
81,675
At 29 February 2020
71,010
7,008
23,094
500
101,612
12
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
5,977,342
6,533,463
Other debtors
304,998
205,884
Prepayments and accrued income
1,071,824
108,559
7,354,164
6,847,906
Deferred tax asset (note 15)
46,208
7,354,164
6,894,114
2021
2020
Amounts falling due after more than one year:
£
£
Other debtors
31,522
55,085
Total debtors
7,385,686
6,949,199
APEX RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 19 -
13
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Bank loans and overdrafts
14
2,432,636
2,276,453
Trade creditors
959,422
1,194,065
Corporation tax
57,254
209,307
Other taxation and social security
122,336
118,804
Other creditors
38,916
9,959
Accruals and deferred income
1,136,181
1,039,445
4,746,745
4,848,033
14
Loans and overdrafts
2021
2020
£
£
Bank overdrafts
2,432,636
2,276,453
Payable within one year
2,432,636
2,276,453
Bank loans and overdrafts include £2,066,144 (2020: £2,276,453) related to invoice finance facilities which are secured against trade debtors.
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2021
2020
2021
2020
Balances:
£
£
£
£
Accelerated capital allowances
6,479
-
-
-
Short term timing differences
(1,556)
-
-
46,208
4,923
-
-
46,208
2021
Movements in the year:
£
Asset at 1 March 2020
(46,208)
Charge to profit or loss
51,131
Liability at 28 February 2021
4,923
APEX RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 20 -
16
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
48,838
57,913
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
At the year end the company had outstanding pension contributions of
£
9,789
(2020:
£10,476), this amount being included within creditors due within one year.
17
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
184,179
240,680
Between two and five years
438,043
727,794
622,222
968,474
At the reporting end date the total future minimum sublease payments expected to be received under non-cancellable subleases was £169,680.
19
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Other information
During the year, the company acquired services from companies under the control of the director. The charge for these services was £495,772 (2020: £123,872). At 28 February 2021, amounts due to to companies under the control of the director was £505,586 (2020: £245,759), which are included within creditors.
During the year, the company paid rent for the office building to a company under the control of the director. The charge for this rent was £140,088 (2020: £186,784). At 28 February 2021, amounts due to to companies under the control of the director was £46,696, which are included within creditors.
As at 28 February 2021 there is an amount owing from the estate of H Brady, shareholder, totalling £72,500 (2020: £72,500) this amount is included with other debtors at the year end.
APEX RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 21 -
20
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Closing balance
£
£
£
£
Mr O T Osazee - Loan account
2.50
96,992
1,498
2,462
100,952
96,992
1,498
2,462
100,952
21
Ultimate controlling party
The company is controlled by O T Osazee via his position as sole director of the company.
22
Cash generated from operations
2021
2020
£
£
Profit for the year after tax
360,433
515,867
Adjustments for:
Taxation charged
98,717
161,852
Finance costs
189,221
255,468
Investment income
(2,462)
Depreciation and impairment of tangible fixed assets
29,120
32,589
Movements in working capital:
Increase in debtors
(480,233)
(27,771)
(Decrease)/increase in creditors
(105,418)
543,483
Cash generated from operations
89,378
1,481,488
23
Analysis of changes in net debt
1 March 2020
Cash flows
28 February 2021
£
£
£
Cash at bank and in hand
183,788
(152,482)
31,306
Bank overdrafts
(2,276,453)
(156,183)
(2,432,636)
(2,092,665)
(308,665)
(2,401,330)
2021-02-28
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