AEO Associates Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kingsgate, 62 High Street, Redhill, Surrey, RH1 1SH.
These financial statements have been prepared in accordance with Section 1A of 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 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 pound.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
During the period ended 31 August 2014 the company acquired the shares of Control Energy Costs Holdings Limited and its trading subsidiary, Control Energy Costs Limited. In order to finance this acquisition the company issued £1,018,000 loan notes, with a further £3,054,000 of deferred consideration secured against assets of the company and its subsidiaries payable over eight years, of which £2,605,742 remained outstanding as at 31 December 2018. At the Balance Sheet date the company had net current liabilities of £916,885. The directors have considered the company's and group's ability to meet the loan repayments and expect these payments to be met as they fall due.
Accordingly the directors consider it appropriate to prepare the financial statements on the going concern basis.
During year the company extended its reporting period to 31 December 2018 in order to align its future reporting periods with the calendar year. As a result the comparative amounts presented in the financial statements are not entirely comparable.
Fixed asset investments are stated at cost less provision for diminution in value.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Group accounts
The financial statements present information about the company as an individual undertaking and not about its group. The company and its subsidiary undertakings comprise a small-sized group. The company has therefore taken advantage of the exemptions provided by section 399 of the Companies Act 2006 not to prepare group accounts.
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.
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.
Under FRS 102, long term loans that are at a below market rate of interest are required to be measured at amortised cost by discounting the initial repayment amount at the date of inception of the loan using a market rate of interest. This has required the directors to estimate the market rate of interest at which they would be able to borrow.
The other creditors falling due after more than one year are secured by a debenture charge over the assets of Control Energy Costs Holdings Limited and Control Energy Costs Limited.
At 31 December 2018, the company owed £4,000 (31 August 2017: £474,024) to Control Energy Costs, a subsidiary undertaking.
Since the year end there has been a change in the schedule of payments relating to the loan notes and deferred consideration payable by the company disclosed in note 1.2. Consequently, the amount payable in the period to 31 December 2019 has become £120,000.