Company registration number:
06912229
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UNAUDITED
FINANCIAL STATEMENTS
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FOR THE YEAR ENDED
31 MAY 2021
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PRESTIGE ASSET FINANCE LIMITED
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PRESTIGE ASSET FINANCE LIMITED
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COMPANY INFORMATION
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PRESTIGE ASSET FINANCE LIMITED
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CONTENTS
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Statement of financial position
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Statement of changes in equity
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Notes to the financial statements
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PRESTIGE ASSET FINANCE LIMITED
REGISTERED NUMBER:
06912229
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STATEMENT OF FINANCIAL POSITION
AS AT
31 MAY 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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PRESTIGE ASSET FINANCE LIMITED
REGISTERED NUMBER:
06912229
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STATEMENT OF FINANCIAL POSITION
(CONTINUED)
AS AT
31 MAY 2021
The director considers that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The
financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the income statement in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
3 February 2022
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The notes on pages 4 to 10 form part of these financial statements.
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PRESTIGE ASSET FINANCE LIMITED
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 MAY 2021
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At 1 June 2019 (Restated)
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Comprehensive income for the year
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Profit for the year (Restated)
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At 1 June 2020 (Restated)
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Comprehensive income for the year
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The notes on pages 4 to 10 form part of these financial statements.
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PRESTIGE ASSET FINANCE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
Prestige Asset Finance Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
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The following principal accounting policies have been applied:
The emergence and spread of COVID-19 in 2020 and the associated social distancing measures and imposed travel restrictions have significantly impacted businesses globally.
Whilst COVID-19 has affected the company, given the uncertainties that still exist, it is not possible to reliably forecast the full extent of this impact.
Like many businesses during the pandemic, the director has taken measures to safeguard cash flow, this included liaising closely with its working capital provider, during and since the year end, to obtain reassurance of ongoing support at current levels. This assurance has been given. Therefore, the director concludes that it is reasonable to adopt the going concern basis in preparing the financial statements
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Revenue shown in the Income Statement represents amount earnt from interest on loans and monies received for sales of goods provided during the year in the normal course of business, net of trade discounts, VAT and other sales and related taxes.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership has been transferred to the buyer (usually on sale of the goods at the till or online receipt).
Revenue generated from interest charged on loans is recognised over time to the extent that there is a right to consideration.
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PRESTIGE ASSET FINANCE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
2.
Accounting policies (continued)
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Income statement in the same period as the related expenditure.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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PRESTIGE ASSET FINANCE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
2.
Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:
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The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
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Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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PRESTIGE ASSET FINANCE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
2.
Accounting policies (continued)
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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The average monthly number of employees, including directors, during the year was
34
(2020 -
26
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PRESTIGE ASSET FINANCE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
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Charge for the year on owned assets
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Amounts owed from related parties
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Prepayments and accrued income
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A prior period reallocation has been made of £4,886,014 to reclassify pledge loans from other debtors to trade debtors. The reallocation was made to reflect the true nature of the loans.
A prior period adjustment has been included to recognise interest income on an accruals basis which has resulted in an increase of trade debtors of the company at 31 May 2020 of £2,220,266.
Included in amounts owed from related parties are loan balances of £15,720 (2020: £nil). These loan balances are unsecured, interest free and repayable on demand.
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PRESTIGE ASSET FINANCE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
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Creditors: Amounts falling due within one year
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Amounts owed to related parties
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Other taxation and social security
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Accruals and deferred income
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A prior period reallocation has been made of £5,000,000 to reclassify loans from other creditors falling due within one year to other loans falling due after more than one year. The reallocation was made to reflect the true nature of the loans.
A prior period adjustment of £421,850 has been included to recognise the corporation tax due on the interest income recognised on an accruals basis as described in note 5.
Included within bank loans is a loan balance of £2,586 (2020: £nil) that carries interest of 0% in the first year and interest of 2.5% from the second year until repayment in October 2027.
Included within other loans is a fixed interest loan balance of £516,574 (2020: £nil) that carries interest of 7.75%. These loans are secured by a fixed and floating charge over all property and undertakings of the company.
The aggregate amount of secured creditors falling due within one year is £516,574 (2020: £nil).
Included in amounts owed to related parties are loan balances of £301,072 (2020: £730,318). These loan balances are unsecured, interest free and repayable on demand.
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PRESTIGE ASSET FINANCE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
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Creditors: Amounts falling due after more than one year
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A prior period reallocation has been made of £5,000,000 to reclassify loans from other creditors falling due within one year to other loans falling due after more than one year. The reallocation was made to reflect the true nature of the loans.
Included within bank loans is a loan balance of £47,414 (2020: £nil) that carries interest of 0% in the first year and interest of 2.5% from the second year until repayment in October 2027. An amount of £17,505 is not due for repayment until greater than 5 years.
Included within other loans are fixed interest loan balances of £3,500,000 (2020: £3,500,000) and £983,426 (2020: £1,500,000) that carries interest of 7.75% and are repayable in December 2023. These loans are secured by a fixed and floating charge over all property and undertakings of the company.
The aggregate amount of secured creditors falling due after one year is £4,483,426 (2020: £5,000,000).
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Commitments under operating leases
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At 31 May 2021 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Revenue recognition of pledge loan interest has changed from a cash basis to an accruals basis which has resulted in an understatement of revenue for the year ending 31 May 2019 of £448,934 and 31 May 2020 of £1,771,332.
An adjustment has been included in the year ending 31 May 2019 and 31 May 2020 to recognise income on an accruals basis which has resulted in an increase of retained earnings on 31 May 2019 of £448,934 and 31 May 2020 of £1,771,332.
A prior period adjustment of £421,850 has been included to recognise the corporation tax due on the interest income recognised on an accruals basis.
An adjustment has been included in the year ending 31 May 2020 to recognise the corporation tax due which has resulted in a decrease of retained earnings on 31 May 2020 of £421,850.
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