Company Registration No. 07370013 (England and Wales)
8Point8 Support Limited
Annual Report And Financial Statements
For The Period Ended 31 March 2021
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
COMPANY INFORMATION
Directors
Mr M Debnam
Mr K M Hampson
Mr D S Storer
Company number
07370013
Registered office
Unit 12 Yorkshire Way
Armthorpe
Doncaster
DN3 3FE
Auditor
Azets Audit Services Limited
Triune Court
Monks Cross Drive
York
YO32 9GZ
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 30
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2021
- 1 -
The directors present the strategic report for the period ended 31 March 2021.
Fair review of the business
8point8 Support Limited operates in the mobile telecoms, digital out of home (DOOH) industries, alongside some facilities management and renewable energy projects delivered over and above the main industries.
Our business employs around 120 directly employed personnel, and the turnover is currently around £12,500,000 per annum.
The operational model is a services business which provides design and construction of critical telecoms and digital infrastructure for blue chip clients such as Telefonica, JCDecaux, Global, Huawei and Nokia.
We have recently created new workstream Directors to be accountable and responsible within the business and changed the overall structure to reflect the workstream. We now have clear responsibilities for the overall operational performance of each business unit; Telecoms, Media, and FM which sit with the individual Directors. The financial performance of the business is lead by our Finance Director who supports and challenges the business units, similarly the Divisional Directors will support and challenge the commercial / financial controls within the business units to ensure compliance and overall performance is achieved.
During the last 12 months, we have had a reduced revenue year based on Covid impacted business, but the growth has now started, and we expect a solid period going forward. We have made investments in staff and technology to ensure we are ready for 5G projects, vendor swap programmes, and DOOH growth markets. We have invested in key staff, and new IT systems at a significant cost, but will be necessary for the future growth opportunities. There is a short term negative cashflow of investing for growth in the workstreams.
The next FY (April 2021 onwards) will see significant increases in 5G infrastructure build through Operators, Site owners and Vendors. Similarly, we will begin to see growth in DOOH installations through the main two media companies (34% and 33% UK Market share respectfully), as we are now one of the preferred suppliers for both of these organisations. The recent throughput of these contracts improved margins towards the end of the FY, but more improvements through process changes and increased margins will follow* (* post Covid19 recovery).
Covid19 Impact. 60% of revenue impacted, with a progressive return to full volume by August / September depending on a number of customer related decisions. i.e. Capex Budget, and 3rd party influencers / external factors.
Improvements made in the last 12 months
Procurement savings – rates and payment terms
Tighter controls with budgets and final accounts – commercial and operational teams
Improved cash collection – new credit control process and staff
KPI’s on final account clearance and variance to budget – Commercial and operational staff.
Future improvements
Recent targeting of aged WIP – new process implemented to reduce exposure to aged WIP losses.
New structure and strategic hires – More clarity and ownership
New IT system – improved scheduling efficiency, fully integrated and improved reporting.
New opportunities
Telecoms Site Owners / Operators and Vendors – New business and telecoms in general improved rates, and volumes from the 5G rollout.
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
- 2 -
KPI's and New Process
In relation to operational/performance KPI’s, we are all working to a 12month plan where we are implementing KPI’s for the following areas.
-
Health & Safety – Zero Harm
-
Financial Performance – P&L /Cashflow/WIP/Debtor Days
-
HR - Development of People – Succession planning
-
Innovation / R&D – New IT System development and implementation
-
Operational Performance – Right First Time / Utilisation
-
Strategy – New Markets / New Customers
In terms of performance at year end 2021 v’s 2020, I would comment as follows: - Our business in terms of concentration levels within the debtor book, and the market positions within telecoms and media, we are in a much stronger position. The cash levels and overall financials are improved as a comparison to those of last year and includes a much better platform for the delivery of increased volumes into 2021/22/23.
Risk Management
Risk management is covered during our monthly board meetings, and includes financial risk, cashflow forecasts with KPI’s for each area of the business, and market drivers which may affect our ability to deliver for our customers.
Examples of risks and how we have mitigated, or avoided the risks in the recent meetings include the below examples: -
Calamity through loss of customer
- High levels of concentration of a single customer within the debtor book, similar to the Nokia situation in FY19. We have diluted the risk of this with new customers within the telecoms industry and entered new markets to provide a more stable customer base. Previously we had concentration of 65%, whereas current levels are max 30% and forecasts reducing to 20%.
Aggressive / Risky Strategies
– We have not planned anything too aggressive, the launch of the new ERP system to support a steady increase in revenues and EBITDA over the next three years.
Supply chain risks
– we have adopted a similar strategy to the concentration levels without our debtor book. We have three or four key suppliers across our supply chain to ensure we have adequate provision of supply.
Cashflow
– we use financial CF reporting to identify short- and long-term gaps and mitigate by leveraging supply chain with agreed extended terms but expect these to be resolved with cash generation improved rates, performance and the 5G rollout.
Risks over non utilisation
– we have increased our subcontractor base for electrical, rigging and civils to ensure we can address peaks and troughs with little impact to the P&L.
Additional Information
Additional Information relating to our business and potential impacts are reduced through policy, process and planning
Environmental Impact
We are a 14001 certificate holder, and operate as a responsible employer to reduce our environmental impact. We have invested in a new business management tool, dime scheduler to help further reduce our environmental impact through efficient planning and mileage reduction.
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
- 3 -
Equal Rights
The Company is committed to promoting equality of opportunity for all staff and job applicants. We aim to create a working environment in which all individuals can make best use of their skills, free from discrimination or harassment, and in which all decisions are based on experience, abilities and qualifications.
We do not discriminate against staff on the basis of age, disability, gender reassignment, marital or civil partner status, pregnancy or maternity, race, (including colour, nationality, ethnic or national origin and caste), religion or belief, sex or sexual orientation These are known as protected characteristics.
The principles of non-discrimination and equality of opportunity also apply to the way in which staff treat visitors, clients, customers, suppliers and former staff members.
Modern Slavery
8point8 Support Limited strictly prohibits the use of modern slavery and human trafficking in our operations and supply chain. We have and will continue to be committed to implementing systems and controls aimed at ensuring that modern slavery is not taking place anywhere within our organisation or in any of our supply chains. We expect that our suppliers will hold their own suppliers to the same high standards.
Mr D S Storer
Director
21 December 2021
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2021
- 4 -
The directors present their annual report and financial statements for the period ended 31 March 2021.
Principal activities
The principal activity of the company continued to be that of wireless telecommunications.
The financial statements are for the 13 month period ended 31 March 2021.
Results and dividends
The results for the period are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr M Debnam
Mr K M Hampson
Mr D S Storer
Auditor
Azets Audit Services Limited were appointed auditor to the
c
ompany following their acquisition of the trade of Garbutt & Elliott Audit Limited on 1 December 2021.
I
n accordance with s487(2) of the Companies Act 2006 they are deemed reappointed annually.
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.
On behalf of the board
Mr D S Storer
Director
21 December 2021
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 MARCH 2021
- 5 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
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 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.
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF 8POINT8 SUPPORT LIMITED
- 6 -
Opinion
We have audited the financial statements of 8Point8 Support Limited (the 'company') for the period ended 31 March 2021 which comprise 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 31 March 2021 and of its loss for the period 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 directors' 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 directors 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 directors are 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 directors'
r
eport for the financial period for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF 8POINT8 SUPPORT LIMITED
- 7 -
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 directors'
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
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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 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
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.
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
.
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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
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
.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the directors and other management, and from inspection of the company's regulatory and legal correspondence. We discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance during the audit.
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF 8POINT8 SUPPORT LIMITED
- 8 -
The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation, pensions legislation, taxation legislation and further laws and regulations that could indirectly affect the financial statements, comprising environmental, employment legislation and health and safety and, in the current climate, Covid-19 regulations. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. These procedures did not identify any potentially material actual or suspected non-compliance.
To identify risks of material misstatement due to fraud we considered the opportunities, incentives and pressures that may exist within the company to commit fraud. Our risk assessment procedures included: enquiry of directors to understand the high-level policies and procedures in place to prevent and detect fraud, reading Board minutes and considering performance targets and incentive schemes in place for management. We communicated identified fraud risks throughout our team and remained alert to any indications of fraud during the audit.
As a result of these procedures, we identified the greatest potential for fraud in the following areas:
- revenue recognition and in particular the risk that revenue is recorded in the wrong period; and
- subjective accounting estimates
Both fraud risks arise due to a desire to present stronger results and enable management to benefit from enhanced incentives. As required by auditing standards we also identified and addressed the risk of management override of controls.
We performed the following procedures to address the risks of fraud identified:
- identifying and testing high risk journal entries through vouching the entries to supporting documentation.
- assessing significant accounting estimates for bias.
- testing the timing and recognition of revenue and, in particular, that it was appropriately recognised.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
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
.
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF 8POINT8 SUPPORT LIMITED
- 9 -
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 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.
Martin Davey (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
21 December 2021
Chartered Accountants
Statutory Auditor
Triune Court
Monks Cross Drive
York
YO32 9GZ
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2021
- 10 -
Period
Period
ended
ended
31 March
29 February
2021
2020
Notes
£
£
Turnover
3
12,541,904
16,745,837
Cost of sales
(12,189,264)
(13,915,360)
Gross profit
352,640
2,830,477
Administrative expenses
(2,531,646)
(2,674,597)
Other operating income
1,042,189
Operating (loss)/profit
4
(1,136,817)
155,880
Interest receivable and similar income
7
15,370
17,626
Interest payable and similar expenses
8
(216,300)
(71,558)
Loss on investment assets
(16,917)
(Loss)/profit before taxation
(1,354,664)
101,948
Tax on (loss)/profit
9
205,000
2,009
(Loss)/profit for the financial period
(1,149,664)
103,957
The profit and loss account has been prepared on the basis that all operations are continuing operations
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
BALANCE SHEET
AS AT
31 MARCH 2021
31 March 2021
- 11 -
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
10
384,346
353,237
Tangible assets
11
271,945
562,165
Investments
12
104,500
207,500
760,791
1,122,902
Current assets
Stocks
14
276,121
127,861
Debtors
15
5,098,895
7,208,585
Cash at bank and in hand
3,657,608
4
9,032,624
7,336,450
Creditors: amounts falling due within one year
16
(9,746,488)
(6,938,799)
Net current (liabilities)/assets
(713,864)
397,651
Total assets less current liabilities
46,927
1,520,553
Creditors: amounts falling due after more than one year
17
(228,356)
(537,318)
Provisions for liabilities
Deferred tax liability
20
55,000
70,000
(55,000)
(70,000)
Net (liabilities)/assets
(236,429)
913,235
Capital and reserves
Called up share capital
23
200
200
Profit and loss reserves
(236,629)
913,035
Total equity
(236,429)
913,235
The financial statements were approved by the board of directors and authorised for issue on 21 December 2021 and are signed on its behalf by:
Mr D S Storer
Director
Company Registration No. 07370013
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2021
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 30 March 2019
200
809,078
809,278
Period ended 29 February 2020:
Profit and total comprehensive income for the period
-
103,957
103,957
Balance at 29 February 2020
200
913,035
913,235
Period ended 31 March 2021:
Loss and total comprehensive income for the period
-
(1,149,664)
(1,149,664)
Balance at 31 March 2021
200
(236,629)
(236,429)
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2021
- 13 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
4,863,563
48,076
Interest paid
(216,300)
(71,558)
Income taxes paid
(216,322)
Net cash inflow/(outflow) from operating activities
4,647,263
(239,804)
Investing activities
Purchase of intangible assets
(97,336)
(136,043)
Purchase of tangible fixed assets
(51,240)
(111,934)
Proceeds on disposal of tangible fixed assets
149,327
25,285
Proceeds on disposal of investments
86,083
195,000
Interest received
15,370
17,626
Net cash generated from/(used in) investing activities
102,204
(10,066)
Financing activities
Proceeds from borrowings
350,000
Repayment of borrowings
(71,448)
(301,822)
Repayment of bank loans
(682,438)
(63,714)
Payment of finance leases obligations
(287,706)
(165,557)
Net cash used in financing activities
(1,041,592)
(181,093)
Net increase/(decrease) in cash and cash equivalents
3,707,875
(430,963)
Cash and cash equivalents at beginning of period
(50,267)
380,696
Cash and cash equivalents at end of period
3,657,608
(50,267)
Relating to:
Cash at bank and in hand
3,657,608
4
Bank overdrafts included in creditors payable within one year
(50,271)
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
- 14 -
1
Accounting policies
Company information
8Point8 Support Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Unit 12 Yorkshire Way, Armthorpe, Doncaster, DN3 3FE.
1.1
Accounting convention
These financial statements have been prepared in accordance with “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 £1.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
During FY 21 (Accounts to March 21) Unfortunately, we were impacted by Covid-19. Media and Telecoms divisions had significantly impacted revenue, and as such this was a loss making year. During the year, we reduced our business overheads in order to reduce the impact to the business.
true
Going forward for FY 22, we are able to benefit from the 5G work and ever-increasing Media activities as they return post covid. New customers and increased throughput from existing customers are expected in the next FY. The company has also invested heavily in a new ERP system, funded through a mix of loan borrowing and internal cashflow and this is now adding benefits to data quality and efficiency.
In a bid to help the company return to profitability and consequently improve its cashflow situation, the company has agreed uplifts on some key customer contracts.
The company has traditionally provided cashflow support to companies with common shareholdings, however following the closure of 8point8 Rail Limited, there will be no further funding allowing the company to support the increase in net working capital requirements. Similarly with other linked companies.
The directors have considered all factors, including in the wider economy, as part of their assessment of going concern. Although the current economic climate creates both cashflow and profitability risks for the company, the directors believe on balance that they have sufficient resources to enable trading to continue for a period of at least one year from the date of approval of the financial statements, on the basis of information currently available to them as at the point of approving these. Accordingly, these financial statements have been prepared on the going concern basis.
1.3
Reporting period
The financial statements are for the 13 month period ended 31 March 2021. Hence the prior
period
figures
which represent
11
months trading
will not be entirely comparable.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and 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 volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 15 -
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. 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
.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
12.5% straight line
1.6
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:
Plant and equipment
17% straight line and 25% reducing balance
Fixtures and fittings
20% straight line and 15% reducing balance
Computers
33% straight line and 33% reducing balance
Motor vehicles
25% straight line and 25% reducing balance
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
.
1.7
Fixed asset investments
Fixed asset investments in a number of motor vehicles and bikes
are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
1.8
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 16 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash at bank and in hand
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.
1.11
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.
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 17 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where 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 have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 18 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in
profit
or
loss
in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.12
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.
1.13
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.
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.
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 19 -
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
1.17
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.
1.18
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.
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
- 20 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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.
Recognition of profit on long term contracts
The company undertakes a number of contracts which run over an extended period on which revenue and profits are recognised as disclosed in note 1.
4
on which there is a key judgment as to the stage of completion. This stage is identified by reference to the total costs attributable to a contract, with budgets being created at the outset based on management experience.
3
Turnover and other revenue
2021
2020
£
£
Turnover analysed by class of business
Wireless telecommunication services
12,541,904
16,716,968
Management charges
-
28,869
12,541,904
16,745,837
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
12,541,904
16,745,837
4
Operating (loss)/profit
2021
2020
Operating (loss)/profit for the period is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
373
22,017
Government grants
(1,042,189)
Fees payable to the company's auditor for the audit of the company's financial statements
23,000
23,000
Depreciation of owned tangible fixed assets
146,776
143,639
Depreciation of tangible fixed assets held under finance leases
70,096
87,251
(Profit)/loss on disposal of tangible fixed assets
(24,739)
5,387
Amortisation of intangible assets
66,227
27,988
Operating lease charges
162,058
167,096
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
- 21 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2021
2020
Number
Number
Operating activities
85
110
Management and administration
35
37
Total
120
147
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
4,687,969
4,744,776
Social security costs
485,731
495,328
Pension costs
109,234
96,946
5,282,934
5,337,050
6
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
148,631
137,500
Company pension contributions to defined contribution schemes
3,814
2,631
152,445
140,131
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2020 - 3).
7
Interest receivable and similar income
2021
2020
£
£
Interest income
Other interest income
15,370
17,626
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
- 22 -
8
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
49,201
29,942
Other interest on financial liabilities
151,610
8,835
200,811
38,777
Other finance costs:
Interest on finance leases and hire purchase contracts
12,029
23,049
Other interest
3,460
9,732
216,300
71,558
9
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
(190,000)
Adjustments in respect of prior periods
(2,009)
Total current tax
(190,000)
(2,009)
Deferred tax
Origination and reversal of timing differences
(15,000)
Total tax credit
(205,000)
(2,009)
The actual credit for the period can be reconciled to the expected (credit)/charge for the period based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
(Loss)/profit before taxation
(1,354,664)
101,948
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
(257,386)
19,370
Tax effect of expenses that are not deductible in determining taxable profit
38,374
12,392
Unutilised tax losses carried forward
3,151
Adjustments in respect of prior years
(2,009)
Other permanent differences
14,012
(34,913)
Taxation credit for the period
(205,000)
(2,009)
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
- 23 -
10
Intangible fixed assets
Software
£
Cost
At 1 March 2020
382,568
Additions
97,336
At 31 March 2021
479,904
Amortisation and impairment
At 1 March 2020
29,331
Amortisation charged for the period
66,227
At 31 March 2021
95,558
Carrying amount
At 31 March 2021
384,346
At 29 February 2020
353,237
11
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 March 2020
186,231
85,318
201,680
691,876
1,165,105
Additions
7,037
800
6,760
36,643
51,240
Disposals
(80,064)
(3,850)
(324,023)
(407,937)
At 31 March 2021
113,204
86,118
204,590
404,496
808,408
Depreciation and impairment
At 1 March 2020
88,046
52,007
93,605
369,282
602,940
Depreciation charged in the period
20,309
20,322
54,640
121,601
216,872
Eliminated in respect of disposals
(34,210)
(1,671)
(247,468)
(283,349)
At 31 March 2021
74,145
72,329
146,574
243,415
536,463
Carrying amount
At 31 March 2021
39,059
13,789
58,016
161,081
271,945
At 29 February 2020
98,185
33,311
108,075
322,594
562,165
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
11
Tangible fixed assets
(Continued)
- 24 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2021
2020
£
£
Plant and equipment
35,969
Motor vehicles
144,445
281,262
144,445
317,231
Depreciation charged against assets held under finance lease amounts to £70,096 (2020 - £87,251).
12
Fixed asset investments
2021
2020
£
£
Unlisted investments
104,500
207,500
Investments represent specialist motor vehicles and other similar assets held for their appreciation in value.
Included in the above are assets with a value of
£104,500
(2020 - £
159,000
) held under hire purchase contracts.
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 March 2020
207,500
Disposals
(103,000)
At 31 March 2021
104,500
Carrying amount
At 31 March 2021
104,500
At 29 February 2020
207,500
13
Financial instruments
2021
2020
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
104,500
207,500
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
- 25 -
14
Stocks
2021
2020
£
£
Raw materials and consumables
276,121
127,861
15
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
1,734,496
2,255,336
Gross amounts owed by contract customers
1,525,502
2,973,606
Corporation tax recoverable
404,000
229,000
Other debtors
1,069,922
1,425,363
Prepayments and accrued income
364,975
325,280
5,098,895
7,208,585
16
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Bank loans and overdrafts
18
732,709
Obligations under finance leases
19
158,473
216,373
Other borrowings
18
73,364
65,656
Payments received on account
3,641,934
1,870,112
Trade creditors
1,573,433
2,603,752
Corporation tax
214,000
229,000
Other taxation and social security
2,884,766
544,130
Deferred income
21
611,531
Other creditors
111,389
291,069
Accruals and deferred income
477,598
385,998
9,746,488
6,938,799
The security relating to bank loans, finance leases and other borrowings is detailed on notes 18 and 19.
17
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Obligations under finance leases
19
44,990
274,796
Other borrowings
18
183,366
262,522
228,356
537,318
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
17
Creditors: amounts falling due after more than one year
(Continued)
- 26 -
The security relating to finance leases and other borrowings is detailed on notes
18 and 19.
18
Loans and overdrafts
2021
2020
£
£
Bank loans
682,438
Bank overdrafts
50,271
Other loans
256,730
328,178
256,730
1,060,887
Payable within one year
73,364
798,365
Payable after one year
183,366
262,522
Within bank loans is an amount of £
nil
(20
20
- £
682,438
) due within one year relating to an invoice financing facility. The invoice finance facility is secured by a floating charge over property and asset rights. At the 31 March 2021, this facility was still held by the company, but did not have a creditor balance.
Other loans includes an amount of £
256,730
(20
20
- £
328,178
) relating to borrowings due for repayment by instalments by May 2024.
19
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
168,636
247,828
In two to five years
46,490
288,656
215,126
536,484
Less: future finance charges
(11,663)
(45,315)
203,463
491,169
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
- 27 -
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
55,000
70,000
2021
Movements in the period:
£
Liability at 1 March 2020
70,000
Credit to profit or loss
(15,000)
Liability at 31 March 2021
55,000
21
Deferred income
2021
2020
£
£
Arising from payments received in advance
611,531
-
22
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
109,234
96,946
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
31 March 2021
, unpaid pension contributions totalling £
15,670
(29
February
20
20
- £
24,794
) were included within other creditors.
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
- 28 -
23
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
190
190
190
190
Ordinary B shares of £1 each
10
10
10
10
200
200
200
200
24
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
99,615
96,376
Between two and five years
21,973
39,532
121,588
135,908
25
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2021
2020
(13 months)
(11 months)
£
£
Aggregate compensation
420,852
386,852
Transactions with related parties
During the period the company entered into the following transactions with related parties:
Sales
Purchases
2021
2020
2021
2020
£
£
£
£
Other related parties
146,220
169,781
35,669
757,541
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
25
Related party transactions
(Continued)
- 29 -
2021
2020
Amounts due to related parties
£
£
Other related parties
130,559
151,497
The following amounts were outstanding at the reporting end date:
2021
2020
Amounts due from related parties
£
£
Other related parties
614,322
689,934
26
Directors' transactions
During the year, several investment assets held by the company have been sold to two of the company directors. In total these assets were sold for £38,500, resulting in a loss on investments of £2,000 being realised.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Mr M Debnam
2.50
305,155
84,520
6,122
(130,785)
265,012
Mr K M Hampson
2.50
298,239
89,021
6,216
(124,607)
268,869
Mr D S Storer
2.50
119,351
6,542
3,031
(4,638)
124,286
722,745
180,083
15,369
(260,030)
658,167
8POINT8 SUPPORT LIMITED
8Point8 Support Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2021
- 30 -
27
Cash generated from operations
2021
2020
£
£
(Loss)/profit for the period after tax
(1,149,664)
103,957
Adjustments for:
Taxation credited
(205,000)
(2,009)
Finance costs
216,300
71,558
Investment income
(15,370)
(17,626)
(Gain)/loss on disposal of tangible fixed assets
(24,739)
5,387
Amortisation and impairment of intangible assets
66,227
27,988
Depreciation and impairment of tangible fixed assets
216,872
230,890
Amounts written off connected company balance
16,917
-
Movements in working capital:
(Increase)/decrease in stocks
(148,260)
99,470
Decrease/(increase) in debtors
2,284,690
(1,002,164)
Increase in creditors
2,994,059
530,625
Increase in deferred income
611,531
-
Cash generated from operations
4,863,563
48,076
28
Analysis of changes in net funds/(debt)
1 March 2020
Cash flows
31 March 2021
£
£
£
Cash at bank and in hand
4
3,657,604
3,657,608
Bank overdrafts
(50,271)
50,271
(50,267)
3,707,875
3,657,608
Borrowings excluding overdrafts
(1,010,616)
753,886
(256,730)
Obligations under finance leases
(491,169)
287,706
(203,463)
(1,552,052)
4,749,467
3,197,415
2021-03-31
2020-03-01
false
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