Company Registration No. 07117447 (England and Wales)
FLEXIMIZE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2021
PAGES FOR FILING WITH REGISTRAR
FLEXIMIZE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
FLEXIMIZE LIMITED
BALANCE SHEET
AS AT
31 JULY 2021
31 July 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
3
60,151
66,932
Current assets
Debtors
4
339,900
99,678
Cash at bank and in hand
31,782
17,175
371,682
116,853
Creditors: amounts falling due within one year
5
(14,238,026)
(10,474,856)
Net current liabilities
(13,866,344)
(10,358,003)
Total assets less current liabilities
(13,806,193)
(10,291,071)
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
(13,806,194)
(10,291,072)
Total equity
(13,806,193)
(10,291,071)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 July 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 28 April 2022 and are signed on its behalf by:
D O'Sullivan
Director
Company Registration No. 07117447
FLEXIMIZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2021
- 2 -
1
Accounting policies
Company information
Fleximize Limited is a private company limited by shares incorporated in England and Wales. The registered office is Holbrook House, 51 John Street, Ipswich, Suffolk, England, IP3 0AH.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The group has made a profit before taxation for the period of £1,023,554 (2020: loss of £2,054,007) and has continued to see increase demand for its products leading to record levels of deployment.. Cash and cash equivalents at the year end amount to £3,325,907 (2020: £5,197,607). The group also had undrawn funding from its senior financing facility totalling £17,680,696 (2020: £25,578,479) that can be utilised to finance new lending until March 2024.
true
The board have carried out a review of the group’s ability to continue in operation for the foreseeable future, including assessing the risks arising from COVID-19 and reviewing the covenants in regard to the senior financing facility. There is regular and proactive engagement with borrowers to determine their financial position and the arrears position of the loan book is regularly monitored. Appropriate forbearance is offered to customers where necessary, however the number requiring this has dropped since the prior year. In addition, the board believes that it is in a strong position to continue to grow the business with further new loans supported by the senior financing facility and will continue to meet the senior financing covenants. The group has in place sufficient capital and liquidity facilities. Furthermore, in assessing the appropriateness to adopt the going concern basis of preparation, the directors have stress tested the financial forecasts through the modelling of several downside scenarios for a period to December 2023. The scenarios considered include an increase in bad debt write-offs and a reduction in new lending volumes over the period of the forecast have been approved. In all scenarios considered to be severe and plausible by the directors, the Company maintains sufficient capital and liquidity to continue as a going concern and will continue to meet the senior financing covenants.
The board are therefore satisfied that the group has a reasonable expectation of continuing in operation for the foreseeable future and it can meet its liabilities to be met as they fall due. The financial statements have therefore been prepared on a going concern basis.
1.3
Turnover
Turnover represents fees and interest receivable in respect of services provided and arising solely in the United Kingdom.
FLEXIMIZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2021
1
Accounting policies
(Continued)
- 3 -
Interest income on loan receivables at amortised cost is calculated using the effective interest rate method which allocates interest over the expected lives of the assets. The effective interest method requires the Company to estimate future cash flows, in some cases based on its experience of customers’ behaviour, considering all contractual terms of the financial instrument, as well as the expected lives of trade receivables. Default fees are charged to customers when they fail to make repayments within the agreed loan period, such fees are recognised as turnover when these amounts are expected to be recovered. Fees and expenses related to the loan form part of the interest income and are recognised using the effective interest rate method.
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:
Loan Platform
3 years
Office equipment
4 years
Computers equipment
3 years
Other Fixed Assets
3 years
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
.
1.5
Impairment of fixed assets
The carrying amount of the
Company's
assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the fixed asset may not be recoverable. If any such indication exists, the assets’ recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.
1.6
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
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.
FLEXIMIZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2021
1
Accounting policies
(Continued)
- 4 -
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.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The charge for taxation is based on the profit for the period and takes into account taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes.
Deferred tax
Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes which have arisen but not reversed by the balance sheet date, except as otherwise required by the UK Generally Accepted Accounting Practice applicable to Smaller Entities.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
1.10
Trade Debtors are amounts due from customers for short and medium term loans issued in the ordinary course of business. Trade and other debtors are measured on initial recognition at fair value and subsequently at amortised cost using the effective interest rate method, less provision for impairment. Subsequent recovery of amounts previously impaired is credited to the profit and loss account.
FLEXIMIZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2021
- 5 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
2
2
3
Tangible fixed assets
Loan Platform
Office equipment
Computers equipment
Other Fixed Assets
Total
£
£
£
£
£
Cost
At 1 August 2020
30,500
29,577
135,918
19,137
215,132
Additions
13,193
23,270
36,463
At 31 July 2021
30,500
42,770
159,188
19,137
251,595
Depreciation and impairment
At 1 August 2020
30,500
26,098
77,839
13,763
148,200
Depreciation charged in the year
4,170
33,700
5,374
43,244
At 31 July 2021
30,500
30,268
111,539
19,137
191,444
Carrying amount
At 31 July 2021
12,502
47,649
60,151
At 31 July 2020
3,479
58,079
5,374
66,932
4
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
15,234
15,291
Other debtors
324,666
84,387
339,900
99,678
FLEXIMIZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2021
- 6 -
5
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
92,287
37,125
Amounts owed to group undertakings
13,850,378
10,255,753
Other creditors
295,361
181,978
14,238,026
10,474,856
6
Related Party Transactions
The company has taken advantage of the exemption to not disclose the related party transactions as
it is a
subsidiary wholly owned by the parent company.
7
Contingent liabilities
The company has entered into a cross guarantee with it's parent company and fellow subsidiary company in respect of third party borrowing arrangements entered into by the group.
8
Controlling party
The company is a wholly-owned subsidiary of Alterium Limited, a company registered in England and Wales (registered number 08621989).