Alliance Asset Management Limited - Limited company accounts 20.1
Alliance Asset Management Limited - Limited company accounts 20.1
| REGISTERED NUMBER: 03107480 (England and Wales) |
| GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 |
| FOR |
| ALLIANCE ASSET MANAGEMENT LIMITED |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Consolidated Statement of Comprehensive Income | 9 |
| Consolidated Statement of Financial Position | 10 |
| Company Statement of Financial Position | 11 |
| Consolidated Statement of Changes in Equity | 12 |
| Company Statement of Changes in Equity | 13 |
| Consolidated Statement of Cash Flows | 14 |
| Notes to the Consolidated Statement of Cash Flows | 15 |
| Notes to the Consolidated Financial Statements | 17 |
| ALLIANCE ASSET MANAGEMENT LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Eagle House |
| 28 Billing Road |
| Northampton |
| NN1 5AJ |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| The directors present their strategic report of the company and the group for the year ended 30 June 2021. |
| REVIEW OF BUSINESS |
| The year to June 2021 has seen a marked improvement over the previous period. The processes and procedures adopted, amid the COVID-19 lockdowns and general challenges, paved the way for a much improved set of results. |
| The ongoing impact of COVID-19, combined with shortages in semi-conductors and raw materials, has led the Directors to continually review and adapt in order to maintain the improvements in performance. |
| Mycardirect Subscription continues to make progress and the directors are confident that the group's investment in this project will prove profitable in the coming year. |
| The Group's consolidated accounts reflect the following year-on-year changes to key financials: |
| - Total Sales +8.4% at £17.84M |
| - Total GM +265% at £2.9M |
| - EBITDA +£4.7M at £286K |
| The Directors are confident that the growth in the subscription business and the resultant recurring income, be it B2B via the AAM Fleet centre or B2C via Mycardirect, will provide a solid platform to capitalise on the group's ability to supply multiple channels within the mobility sectors. |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The Group's operations expose it to some financial risks including the effect of changes in interest rates on debt and customer credit risk. These risks can be analysed as follows: |
| Interest Rate Risk |
| The Group borrows on a mix of fixed and variable rate agreements but leases vehicles to customers on fixed rate contracts. Therefore, if interest rates were to rise quickly and substantially the Group could incur reduced margins or a loss in extreme circumstances. This risk is mitigated by the short-term profile of the vehicles funded on a variable rate; generally a maximum exposure of 12 months. The Group will actively look to make fixed rate finance the preference in the coming months. |
| Credit Risk |
| The Group's credit risk is primarily in two areas, customers for the payment of vehicle rental and or rental associated services and leasing companies for payment of commissions. The Group addresses these risks by robust underwriting, daily monitoring of debtors and timely action to resolve late payments. |
| Vehicle Supply |
| The Group derives its revenue from its ability to supply vehicles and associated services to clients. In the event of limited vehicle supply the Group could potentially see opportunities lost and gross margin reduction due to natural fleet terminations. The Group looks to mitigate these issues by forward ordering substantial numbers of vehicles therefore guaranteeing continuous supply. In the event that vehicle supply were to be further constrained the group can retain vehicles obtained by way of asset finance for extended periods and therefore maintain revenues |
| Residual Value Risk |
| The Group takes a prudent view of all vehicle future values and sets the Residual Value price at no more than 95% of the CAP projected price. This prudent approach effectively means that the Market Value of the asset is generally higher than both the Net Book Value and any HP liability - effectively building equity in the fleet. |
| SIGNED BY ORDER OF THE DIRECTORS: |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| The directors present their report with the financial statements of the company and the group for the year ended 30 June 2021. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of the provision of vehicles and funding solutions by the way of daily rentals, contract hire and leasing, new and second-hand vehicle sales to all personal and business sectors. |
| DIVIDENDS |
| The total distribution of dividends for the year ended 30 June 2021 will be £nil. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 July 2020 to the date of this report. |
| Other changes in directors holding office are as follows: |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| AUDITORS |
| The auditors, DNG Dove Naish LLP, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| SIGNED BY ORDER OF THE DIRECTORS: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| ALLIANCE ASSET MANAGEMENT LIMITED |
| Opinion |
| We have audited the financial statements of Alliance Asset Management Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2021 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 group's and of the parent company affairs as at 30 June 2021 and of the group's loss for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| 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. |
| In connection with our audit of the financial statements, 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 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| ALLIANCE ASSET MANAGEMENT LIMITED |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
| 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' 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 Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| ALLIANCE ASSET MANAGEMENT LIMITED |
| Auditors' 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 a Report of the Auditors 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. |
| We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant Taxation legislation |
| We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management, the ability for the company to continue as a going concern, the misstatement of wage and the understatement of revenue. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing meeting minutes, regulatory correspondence and professional fees, detailed substantive testing on the completeness of income, reviewing budgets and forecasts for the next financial year, substantively testing wages with a reconciliation of the payroll expenses to documentation and reviewing accounting estimates for bias. |
| 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. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
| These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
| for and on behalf of |
| Eagle House |
| 28 Billing Road |
| Northampton |
| NN1 5AJ |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 2021 | 2020 |
| Notes | £ | £ |
| TURNOVER | 3 | 17,835,942 | 16,460,119 |
| Cost of sales | 14,956,501 | 15,670,633 |
| GROSS PROFIT | 2,879,441 | 789,486 |
| Administrative expenses | 4,360,157 | 7,820,166 |
| (1,480,716 | ) | (7,030,680 | ) |
| Other operating income | 121,298 | 233,359 |
| OPERATING LOSS | 5 | (1,359,418 | ) | (6,797,321 | ) |
| Interest receivable and similar income | 23 | 44 |
| (1,359,395 | ) | (6,797,277 | ) |
| Interest payable and similar expenses | 6 | 387,760 | 506,390 |
| LOSS BEFORE TAXATION | (1,747,155 | ) | (7,303,667 | ) |
| Tax on loss | 7 | (163,000 | ) | (700,445 | ) |
| LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
| 30 JUNE 2021 |
| 2021 | 2020 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 10 | 3,194,288 | 3,588,844 |
| Tangible assets | 11 | 8,187,914 | 7,015,257 |
| Investments | 12 | - | - |
| 11,382,202 | 10,604,101 |
| CURRENT ASSETS |
| Debtors | 13 | 3,080,131 | 3,500,343 |
| Cash at bank | 1,009,114 | 4,617 |
| 4,089,245 | 3,504,960 |
| CREDITORS |
| Amounts falling due within one year | 14 | 9,400,119 | 11,802,965 |
| NET CURRENT LIABILITIES | (5,310,874 | ) | (8,298,005 | ) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
6,071,328 |
2,306,096 |
| CREDITORS |
| Amounts falling due after more than one year |
15 |
9,582,658 |
4,233,271 |
| NET LIABILITIES | (3,511,330 | ) | (1,927,175 | ) |
| CAPITAL AND RESERVES |
| Called up share capital | 20 | 149,305 | 149,305 |
| Revaluation reserve | 21 | 79,658 | 79,658 |
| Capital redemption reserve | 21 | 26,095 | 26,095 |
| Retained earnings | 21 | (3,766,388 | ) | (2,182,233 | ) |
| SHAREHOLDERS' FUNDS | (3,511,330 | ) | (1,927,175 | ) |
| The financial statements were approved by the Board of Directors and authorised for issue on 16 March 2022 and were signed on its behalf by: |
| C Mather - Director |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| COMPANY STATEMENT OF FINANCIAL POSITION |
| 30 JUNE 2021 |
| 2021 | 2020 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 10 | 3,165,899 | 3,588,844 |
| Tangible assets | 11 |
| Investments | 12 |
| CURRENT ASSETS |
| Debtors | 13 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 14 |
| NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
15 |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 20 |
| Revaluation reserve | 21 |
| Capital redemption reserve | 21 |
| Retained earnings | 21 |
| SHAREHOLDERS' FUNDS |
| Company's loss for the financial year | (111,696 | ) | (2,461,834 | ) |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| Called up | Capital |
| share | Retained | Revaluation | redemption | Total |
| capital | earnings | reserve | reserve | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 July 2019 | 149,305 | 4,743,999 | 79,658 | 26,095 | 4,999,057 |
| Changes in equity |
| Dividends | - | (323,010 | ) | - | - | (323,010 | ) |
| Total comprehensive loss | - | (6,603,222 | ) | - | - | (6,603,222 | ) |
| Balance at 30 June 2020 | 149,305 | (2,182,233 | ) | 79,658 | 26,095 | (1,927,175 | ) |
| Changes in equity |
| Total comprehensive loss | - | (1,584,155 | ) | - | - | (1,584,155 | ) |
| Balance at 30 June 2021 | 149,305 | (3,766,388 | ) | 79,658 | 26,095 | (3,511,330 | ) |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| Called up | Capital |
| share | Retained | Revaluation | redemption | Total |
| capital | earnings | reserve | reserve | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 July 2019 |
| Changes in equity |
| Dividends | - | ( |
) | - | - | ( |
) |
| Total comprehensive loss | - | (2,461,834 | ) | (2,461,834 | ) |
| Balance at 30 June 2020 |
| Changes in equity |
| Total comprehensive loss | - | ( |
) | ( |
) |
| Balance at 30 June 2021 |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| CONSOLIDATED STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 2021 | 2020 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 424,815 | 611,451 |
| Interest paid | (82,167 | ) | (90,946 | ) |
| Interest element of hire purchase payments paid |
(305,593 |
) |
(415,444 |
) |
| Tax paid | (231,645 | ) | - |
| Net cash from operating activities | (194,590 | ) | 105,061 |
| Cash flows from investing activities |
| Purchase of intangible fixed assets | (33,000 | ) | - |
| Purchase of tangible fixed assets | (3,332,174 | ) | (6,228,197 | ) |
| Sale of intangible fixed assets | - | 76,173 |
| Sale of tangible fixed assets | 1,199,698 | 10,824,083 |
| Interest received | 23 | 44 |
| Net cash from investing activities | (2,165,453 | ) | 4,672,103 |
| Cash flows from financing activities |
| New loans in year | 5,000,000 | - |
| Net increase/(decrease) in HP liability | 370,089 | (5,927,653 | ) |
| Equity dividends paid | - | (323,010 | ) |
| Net cash from financing activities | 5,370,089 | (6,250,663 | ) |
| Increase/(decrease) in cash and cash equivalents | 3,010,046 | (1,473,499 | ) |
| Cash and cash equivalents at beginning of year |
2 |
(2,000,932 |
) |
(527,433 |
) |
| Cash and cash equivalents at end of year |
2 |
1,009,114 |
(2,000,932 |
) |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2021 | 2020 |
| £ | £ |
| Loss before taxation | (1,747,155 | ) | (7,303,667 | ) |
| Depreciation charges | 1,644,956 | 2,351,917 |
| Profit on disposal of fixed assets | (257,581 | ) | (28,842 | ) |
| Finance costs | 387,760 | 506,390 |
| Finance income | (23 | ) | (44 | ) |
| 27,957 | (4,474,246 | ) |
| Decrease in trade and other debtors | 644,300 | 3,254,325 |
| (Decrease)/increase in trade and other creditors | (247,442 | ) | 1,831,372 |
| Cash generated from operations | 424,815 | 611,451 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
| Year ended 30 June 2021 |
| 30/6/21 | 1/7/20 |
| £ | £ |
| Cash and cash equivalents | 1,009,114 | 4,617 |
| Bank overdrafts | - | (2,005,549 | ) |
| 1,009,114 | (2,000,932 | ) |
| Year ended 30 June 2020 |
| 30/6/20 | 1/7/19 |
| £ | £ |
| Cash and cash equivalents | 4,617 | 31,319 |
| Bank overdrafts | (2,005,549 | ) | (558,752 | ) |
| (2,000,932 | ) | (527,433 | ) |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1/7/20 | Cash flow | At 30/6/21 |
| £ | £ | £ |
| Net cash |
| Cash at bank | 4,617 | 1,004,497 | 1,009,114 |
| Bank overdrafts | (2,005,549 | ) | 2,005,549 | - |
| (2,000,932 | ) | 3,010,046 | 1,009,114 |
| Debt |
| Finance leases | (7,973,553 | ) | (370,089 | ) | (8,343,642 | ) |
| Debts falling due within 1 year | - | (397,917 | ) | (397,917 | ) |
| Debts falling due after 1 year | - | (4,602,083 | ) | (4,602,083 | ) |
| (7,973,553 | ) | (5,370,089 | ) | (13,343,642 | ) |
| Total | (9,974,485 | ) | (2,360,043 | ) | (12,334,528 | ) |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 1. | STATUTORY INFORMATION |
| Alliance Asset Management Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Going concern |
| The directors have a reasonable expectation that the company will have sufficient funds to continue to meet its liabilities as they fall due for the foreseeable future and therefore have prepared the financial statements on a going concern basis. |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Basis of consolidation |
| The consolidated financial statements incorporate those of Alliance Asset Management Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. |
| All financial statements are made up to 30 June. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group. |
| All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. |
| In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment. |
| Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill. |
| The consolidated financial statements incorporate the assets, liabilities and results of the following entities in accordance with the accounting policy described above: |
Name of entity |
Registered office |
Nature of business |
Class of shares held |
Equity holding % |
mycardirect Limited |
England and Wales |
As group |
Ordinary |
100 |
| The following entities are not included in the consolidation on the basis that they are dormant: |
AAM Rental Management Ltd |
England and Wales |
Dormant |
Ordinary |
100 |
Best Car Finder Group Ltd |
England and Wales |
Dormant |
Ordinary |
88 |
AAM Fleetcentre Limited |
England and Wales |
Dormant |
Ordinary |
100 |
AAM MAAS Limited |
England and Wales |
Dormant |
Ordinary |
100 |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Significant judgements and estimates |
| The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within the individual accounting policies below. |
| Turnover |
| Turnover represents the revenue arising from the company's activities, excluding value added tax. These comprise vehicle rentals, the sale of new and used vehicles and the supply of related goods and services. Revenue arising on vehicle rentals is recognised over the life of the rental agreement. Other revenues are recognised on completion of the service provided by the company or delivery of the goods. |
| Vehicles which are held as fixed assets for rental are treated as fixed asset disposals when sold. These assets are then reclassified as inventory once the rental period has ended and there is a change of intended use to being held for sale within the second hand vehicle sales division. The proceeds on sale are recognised as turnover and the net book value of the asset (adjusted for any write downs) is recognised in cost of sales. |
| Goodwill |
| Tangible fixed assets |
| Freehold property | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Computer equipment | - |
| Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. |
| Depreciation methods, useful lives and residual values are reviewed at each balance sheet date. The selection of these residual values and estimated lives requires the exercise of judgement. The directors are required to assess whether there is an indication of impairment to the carrying value of assets. In making that assessment, judgements are made in estimating value in use. The directors consider that the individual carrying values of assets are supportable by their value in use. |
| Government grants |
| Government grant income is recognised as it is receivable, to the extent that the grant has been expended by the end of the financial year. Unspent grants are shown on the Balance Sheet as liabilities |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less. |
| Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income under administrative expenses. |
| 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 entity after deducting all of its financial liabilities. |
| Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
| Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 3. | TURNOVER |
| The turnover and loss before taxation are attributable to the one principal activity of the group. |
| An analysis of turnover by class of business is given below: |
| 2021 | 2020 |
| £ | £ |
| Vehicle rental | 15,580,040 | 13,646,277 |
| Vehicle sales | 2,255,902 | 2,813,842 |
| 17,835,942 | 16,460,119 |
| An analysis of turnover by geographical market is given below: |
| 2021 | 2020 |
| £ | £ |
| United Kingdom | 17,835,942 | 16,460,119 |
| 17,835,942 | 16,460,119 |
| 4. | EMPLOYEES AND DIRECTORS |
| 2021 | 2020 |
| £ | £ |
| Wages and salaries | 1,811,995 | 2,791,195 |
| Social security costs | 179,570 | 135,868 |
| Other pension costs | 31,150 | 30,653 |
| 2,022,715 | 2,957,716 |
| The average number of employees during the year was as follows: |
| 2021 | 2020 |
| Sales | 36 | 51 |
| Administration | 24 | 27 |
| The average number of employees by undertakings that were proportionately consolidated during the year was 60 (2020 - 78 ) . |
| 2021 | 2020 |
| £ | £ |
| Directors' remuneration | 236,767 | 163,511 |
| Directors' pension contributions to money purchase schemes | 3,768 | 1,424 |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes | 2 | 2 |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 4. | EMPLOYEES AND DIRECTORS - continued |
| Information regarding the highest paid director for the year ended 30 June 2021 is as follows: |
| 2021 |
| £ |
| Emoluments etc | 119,218 |
| Pension contributions to money purchase schemes | 2,453 |
| 5. | OPERATING LOSS |
| The operating loss is stated after charging/(crediting): |
| 2021 | 2020 |
| £ | £ |
| Depreciation - owned assets | 44,026 | 49,712 |
| Depreciation - assets on hire purchase contracts | 1,173,374 | 1,881,276 |
| Profit on disposal of fixed assets | (257,581 | ) | (28,842 | ) |
| Goodwill amortisation | 422,945 | 420,929 |
| Computer software amortisation | 4,611 | - |
| Auditors' remuneration | 23,100 | 22,050 |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2021 | 2020 |
| £ | £ |
| Bank interest | 70,416 | 90,946 |
| Other interest payable | 11,751 | - |
| Hire purchase | 305,593 | 415,444 |
| 387,760 | 506,390 |
| 7. | TAXATION |
| Analysis of the tax credit |
| The tax credit on the loss for the year was as follows: |
| 2021 | 2020 |
| £ | £ |
| Current tax: |
| UK corporation tax | - | (143,221 | ) |
| Deferred tax | (163,000 | ) | (557,224 | ) |
| Tax on loss | (163,000 | ) | (700,445 | ) |
| UK corporation tax has been charged at 19 % . |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 7. | TAXATION - continued |
| Reconciliation of total tax credit included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2021 | 2020 |
| £ | £ |
| Loss before tax | (1,747,155 | ) | (7,303,667 | ) |
| Loss multiplied by the standard rate of corporation tax in the UK of 19 % (2020 - 19 %) |
(331,959 |
) |
(1,387,697 |
) |
| Effects of: |
| Expenses not deductible for tax purposes | 88,606 | 85,681 |
| Depreciation in excess of capital allowances | 51,545 | 598,544 |
| Deferred tax movement | (163,000 | ) | (557,224 | ) |
| Losses created | 191,808 | 560,251 |
| Total tax credit | (163,000 | ) | (700,445 | ) |
| 8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
| As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
| 9. | DIVIDENDS |
| 2021 | 2020 |
| £ | £ |
| Ordinary shares shares of 10p each |
| Interim | - | 323,010 |
| 10. | INTANGIBLE FIXED ASSETS |
| Group |
| Computer |
| Goodwill | software | Totals |
| £ | £ | £ |
| COST |
| At 1 July 2020 | 4,229,163 | - | 4,229,163 |
| Additions | - | 33,000 | 33,000 |
| At 30 June 2021 | 4,229,163 | 33,000 | 4,262,163 |
| AMORTISATION |
| At 1 July 2020 | 640,319 | - | 640,319 |
| Amortisation for year | 422,945 | 4,611 | 427,556 |
| At 30 June 2021 | 1,063,264 | 4,611 | 1,067,875 |
| NET BOOK VALUE |
| At 30 June 2021 | 3,165,899 | 28,389 | 3,194,288 |
| At 30 June 2020 | 3,588,844 | - | 3,588,844 |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 10. | INTANGIBLE FIXED ASSETS - continued |
| Company |
| Goodwill |
| £ |
| COST |
| At 1 July 2020 |
| and 30 June 2021 |
| AMORTISATION |
| At 1 July 2020 |
| Amortisation for year |
| At 30 June 2021 |
| NET BOOK VALUE |
| At 30 June 2021 |
| At 30 June 2020 |
| 11. | TANGIBLE FIXED ASSETS |
| Group |
| Fixtures |
| Freehold | and | Motor | Computer |
| property | fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 July 2020 | 379,765 | 129,281 | 9,034,741 | 252,512 | 9,796,299 |
| Additions | - | 7,596 | 3,316,048 | 8,530 | 3,332,174 |
| Disposals | - | - | (2,133,106 | ) | - | (2,133,106 | ) |
| At 30 June 2021 | 379,765 | 136,877 | 10,217,683 | 261,042 | 10,995,367 |
| DEPRECIATION |
| At 1 July 2020 | 60,673 | 120,051 | 2,368,555 | 231,763 | 2,781,042 |
| Charge for year | 7,596 | 10,865 | 1,184,908 | 14,031 | 1,217,400 |
| Eliminated on disposal | - | - | (1,190,989 | ) | - | (1,190,989 | ) |
| At 30 June 2021 | 68,269 | 130,916 | 2,362,474 | 245,794 | 2,807,453 |
| NET BOOK VALUE |
| At 30 June 2021 | 311,496 | 5,961 | 7,855,209 | 15,248 | 8,187,914 |
| At 30 June 2020 | 319,092 | 9,230 | 6,666,186 | 20,749 | 7,015,257 |
| The net book value of tangible fixed assets includes £ 7,834,059 (2020 - £ 6,603,536 ) in respect of assets held under hire purchase contracts. |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 11. | TANGIBLE FIXED ASSETS - continued |
| Company |
| Fixtures |
| Freehold | and | Motor | Computer |
| property | fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 July 2020 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 30 June 2021 |
| DEPRECIATION |
| At 1 July 2020 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) |
| At 30 June 2021 |
| NET BOOK VALUE |
| At 30 June 2021 |
| At 30 June 2020 |
| The net book value of tangible fixed assets includes £ 7,834,059 (2020 - £ 6,603,536 ) in respect of assets held under hire purchase contracts. |
| 12. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 July 2020 |
| and 30 June 2021 |
| NET BOOK VALUE |
| At 30 June 2021 |
| At 30 June 2020 |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 12. | FIXED ASSET INVESTMENTS - continued |
| The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
| Subsidiaries |
| Registered office: 3 Eaton Court, Colmworth Business Park, Eaton Socon, Cambridgeshire, PE19 8ER |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves | ( |
) | ( |
) |
| Loss for the year | ( |
) | ( |
) |
| Registered office: 3 Eaton Court, Colmworth Business Park, Eaton Socon, Cambridgeshire, PE19 8ER |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves |
| Registered office: 3 Eaton Court, Colmworth Business Park, Eaton Socon, Cambridgeshire, PE19 8ER |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves |
| Registered office: 3 Eaton Court, Colmworth Business Park, Eaton Socon, Cambridgeshire, PE19 8ER |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 |
| £ |
| Aggregate capital and reserves |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 12. | FIXED ASSET INVESTMENTS - continued |
| Registered office: 3 Eaton Court, Colmworth Business Park, Eaton Socon, Cambridgeshire, PE19 8ER |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 |
| £ |
| Aggregate capital and reserves |
| 13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| £ | £ | £ | £ |
| Trade debtors | 1,772,159 | 2,378,179 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 19,034 | 50,850 |
| Tax | 61,088 | - |
| Deferred tax asset | 412,000 | 249,000 | 412,000 | 249,000 |
| Prepayments and accrued income | 815,850 | 822,314 |
| 3,080,131 | 3,500,343 |
| Deferred tax asset |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| £ | £ | £ | £ |
| Deferred tax | 412,000 | 249,000 | 412,000 | 249,000 |
| 14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 16) | 397,917 | 2,005,549 |
| Hire purchase contracts (see note 17) | 3,363,067 | 3,740,282 |
| Trade creditors | 1,174,226 | 1,110,985 |
| Amounts owed to group undertakings | - | - |
| Tax | 343,668 | 514,225 |
| Social security and other taxes | 622,663 | 298,865 |
| VAT | 1,700,926 | 1,806,432 | 1,708,998 | 1,916,373 |
| Other creditors | 140,025 | 80,646 |
| Accruals and deferred income | 1,657,627 | 2,245,981 |
| 9,400,119 | 11,802,965 |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| £ | £ | £ | £ |
| Bank loans (see note 16) | 4,602,083 | - |
| Hire purchase contracts (see note 17) | 4,980,575 | 4,233,271 |
| 9,582,658 | 4,233,271 |
| 16. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| £ | £ | £ | £ |
| Amounts falling due within one year or | on demand: |
| Bank overdrafts | - | 2,005,549 |
| Bank loans | 397,917 | - |
| 397,917 | 2,005,549 |
| Amounts falling due between one and | two years: |
| Bank loans - 1-2 years | 1,175,000 | - |
| Amounts falling due between two and | five years: |
| Bank loans - 2-5 years | 3,427,083 | - |
| 17. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 2021 | 2020 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 3,363,067 | 3,740,282 |
| Between one and five years | 4,980,575 | 4,233,271 |
| 8,343,642 | 7,973,553 |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 17. | LEASING AGREEMENTS - continued |
| Company |
| Hire purchase contracts |
| 2021 | 2020 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Group |
| Non-cancellable | operating leases |
| 2021 | 2020 |
| £ | £ |
| Within one year | 4,740,165 | 977,098 |
| Between one and five years | 1,883,167 | 258,764 |
| In more than five years | 60,000 | 90,000 |
| 6,683,332 | 1,325,862 |
| Company |
| Non-cancellable | operating leases |
| 2021 | 2020 |
| £ | £ |
| Within one year |
| Between one and five years |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 18. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| £ | £ | £ | £ |
| Bank overdraft | - | 2,005,549 |
| Bank loans | 5,000,000 | - |
| Hire purchase contracts | 8,343,642 | 7,973,553 | 8,343,642 | 7,973,553 |
| 13,343,642 | 9,979,102 |
| The overdraft is secured by way of a fixed and floating charge over the company's assets. The company has also entered into a cross guarantee arrangement with its subsidiary undertaking to secure the liabilities of each other. |
| The bank loan is secured by way of a fixed charge over all current and future freehold and leasehold properties, all intellectual property, goodwill , equipment, book debts, investments and monies held by the company. |
| Other funders provide the company with additional finance facilities. These agreements are either secured by way of a fixed and floating charge over the relevant assets or by a floating charge over the full benefits and advantages of all indemnities and guarantees relating to assets on hire. |
| 19. | DEFERRED TAX |
| Group |
| £ |
| Balance at 1 July 2020 | (249,000 | ) |
| Provided during year | (163,000 | ) |
| Balance at 30 June 2021 | (412,000 | ) |
| Company |
| £ |
| Balance at 1 July 2020 | ( |
) |
| Provided during year | ( |
) |
| Balance at 30 June 2021 | ( |
) |
| 20. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2021 | 2020 |
| value: | £ | £ |
| Ordinary shares | 10p | 148,925 | 148,925 |
| A shares | £1 | 190 | 190 |
| B shares | £1 | 190 | 190 |
| 149,305 | 149,305 |
| ALLIANCE ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 03107480) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 21. | RESERVES |
| Group |
| Capital |
| Retained | Revaluation | redemption |
| earnings | reserve | reserve | Totals |
| £ | £ | £ | £ |
| At 1 July 2020 | (2,182,233 | ) | 79,658 | 26,095 | (2,076,480 | ) |
| Deficit for the year | (1,584,155 | ) | (1,584,155 | ) |
| At 30 June 2021 | (3,766,388 | ) | 79,658 | 26,095 | (3,660,635 | ) |
| Company |
| Capital |
| Retained | Revaluation | redemption |
| earnings | reserve | reserve | Totals |
| £ | £ | £ | £ |
| At 1 July 2020 | 2,236,705 |
| Deficit for the year | ( |
) | ( |
) |
| At 30 June 2021 | 2,125,009 |
| 22. | PENSION COMMITMENTS |
| The pension cost for the period represents contributions of £31,150 (2020: £30,653) paid to the defined contribution pension scheme operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. |
| At the year end there was £5,088 (2020: £6,998) of outstanding pension contributions included within other creditors. |
| 23. | RELATED PARTY DISCLOSURES |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
| During the year, a total of key management personnel compensation of £ 270,521 (2020 - £ 183,373 ) was paid. |
| 24. | ULTIMATE CONTROLLING PARTY |
| The ultimate controlling party is J Lavallin by virtue of him controlling the majority of the issued share capital. |