Five by Five Limited
Financial Statements
For Filing with Registrar
For the year ended 31 December 2019
Company Registration No. 01444820 (England and Wales)
Five by Five Limited
Company Information
Directors
M Lawton
N Lawton
Secretary
A Pond
Company number
01444820
Registered office
4 Grosvenor Square
Southampton
Hampshire
SO15 2BE
Auditor
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
Business address
4 & 5 Grosvenor Square
Southampton
Hampshire
SO15 2BE
Bankers
National Westminster Bank plc
309 Templars Way
Chandlers Ford
Hampshire
SO53 3RY
Five by Five Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 8
Five by Five Limited
Balance Sheet
As at 31 December 2019
31 December 2019
Page 1
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
5
264,792
256,944
Current assets
Debtors
6
1,941,195
1,556,564
Cash at bank and in hand
1,815,442
1,498,283
3,756,637
3,054,847
Creditors: amounts falling due within one year
7
(1,353,272)
(1,352,692)
Net current assets
2,403,365
1,702,155
Total assets less current liabilities
2,668,157
1,959,099
Provisions for liabilities
(10,020)
(10,020)
Net assets
2,658,137
1,949,079
Capital and reserves
Called up share capital
8
7,500
7,500
Capital redemption reserve
2,500
2,500
Profit and loss reserves
2,648,137
1,939,079
Total equity
2,658,137
1,949,079
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
The financial statements were approved by the board of directors and authorised for issue on 16 December 2020 and are signed on its behalf by:
N Lawton
Director
Company Registration No. 01444820
Five By Five Limited
Five by Five Limited
Notes to the Financial Statements
For the year ended 31 December 2019
Page 2
1
Accounting policies
Company information
Five by Five Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
4 Grosvenor Square, Southampton, Hampshire, SO15 2BE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The directors have considered the potential impact of COVID-19, and the various measures taken to contain it, on the operations of the business in the near future. The directors will continue to monitor the government announcements, and in the event income is impacted significantly they will consider cost cutting measures in order to ensure the long term viability of the business.
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis
.
1.3
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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 are recoverable.
Five By Five Limited
Five by Five Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2019
1
Accounting policies
(Continued)
Page 3
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Over the life of the lease
Plant and machinery
3 years straight line
Fixtures, fittings & equipment
3 years straight line
Computer equipment
3 years straight line
Motor vehicles
3 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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.
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 (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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.
1.6
Cash and cash equivalents
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Five By Five Limited
Five by Five Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2019
1
Accounting policies
(Continued)
Page 4
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The 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.
Five By Five Limited
Five by Five Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2019
1
Accounting policies
(Continued)
Page 5
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.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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 are included in the profit and loss account for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 54
(2018 - 51).
3
Directors' remuneration
2019
2018
£
£
Remuneration paid to directors
85,000
71,667
Five By Five Limited
Five by Five Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2019
Page 6
4
Dividends
2019
2018
£
£
Final paid
250,000
250,000
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2019
180,028
311,807
491,835
Additions
7,061
77,395
84,456
At 31 December 2019
187,089
389,202
576,291
Depreciation and impairment
At 1 January 2019
31,293
203,598
234,891
Depreciation charged in the year
15,511
61,097
76,608
At 31 December 2019
46,804
264,695
311,499
Carrying amount
At 31 December 2019
140,285
124,507
264,792
At 31 December 2018
148,735
108,209
256,944
6
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
448,819
469,010
Amounts due from group undertakings
1,302,185
830,084
Other debtors
190,191
257,470
1,941,195
1,556,564
Trade debtors disclosed above are measured at amortised cost.
Five By Five Limited
Five by Five Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2019
Page 7
7
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
124,768
157,018
Amounts due to group undertakings
-
3,179
Corporation tax
174,154
145,204
Other taxation and social security
194,554
272,310
Other creditors
859,796
774,981
1,353,272
1,352,692
8
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
7,500 Ordinary shares of £1 each
7,500
7,500
7,500
7,500
Five By Five Limited
Five by Five Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2019
Page 8
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Esther Carder
The auditor was Moore Kingston Smith LLP
10
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2019
2018
£
£
-
5,510
11
Related party transactions
No guarantees have been given or received.
The company premises at 4 & 5 Grosvenor Square, Southampton are rented from Michael J Lawton. The rent was on normal rental terms until 30 April 2015 after which the premises was rent-free.
At the balance sheet date, £Nil (2018: £56,657 owed to) is owed by Michael J Lawton and £Nil (2018: £250,000) is owed to Nicholas M Lawton, both of whom are directors in the company.
At the balance sheet date, £252,308 (2018: £3,179 owed to) is owed by Dragonfish Consulting Limited, a fellow group company.
In accordance with FRS 102 33.1A, transactions with members of the group are not disclosed where the counterparty is a wholly owned subsidiary of the ultimate parent company.
During the year, the company had management charges receivable of £184,000 (2018: £159,996) from Dragonfish Consulting Limited, a fellow group company.
12
Controlling party
The ultimate controlling party is Michael J Lawton by virtue of his shareholding in the ultimate parent company.
The immediate parent company and ultimate parent company is Lawton Communications Group Limited, a company registered in England and Wales.
Lawton Communications Group Limited prepares group financial statements and copies can be obtained from - 4 & 5 Grosvenor Square, Southampton, SO15 2BE.