REGISTERED NUMBER:
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2021 |
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FIVE BY FIVE LIMITED |
REGISTERED NUMBER:
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2021 |
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FOR |
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FIVE BY FIVE LIMITED |
FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
For The Year Ended 31 December 2021 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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FIVE BY FIVE LIMITED |
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COMPANY INFORMATION |
For The Year Ended 31 December 2021 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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3rd Floor |
Ocean Village Innovation Centre |
Ocean Way |
Southampton |
Hampshire |
SO14 3JZ |
FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820) |
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BALANCE SHEET |
31 December 2021 |
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2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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CURRENT ASSETS |
Debtors | 6 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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PROVISIONS FOR LIABILITIES | 9 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 10 |
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Capital redemption reserve |
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Retained earnings |
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SHAREHOLDERS' FUNDS |
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In accordance with Section 444 of the Companies Act 2006, the Profit or Loss Account has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820) |
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NOTES TO THE FINANCIAL STATEMENTS |
For The Year Ended 31 December 2021 |
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1. | STATUTORY INFORMATION |
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Five by Five Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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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. |
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The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. |
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The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies. |
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Going concern |
The financial statements have been prepared on a going concern basis. The directors acknowledge that given the currently rapidly changing business and social environment, there are likely to be significant unknown factors which may present themselves. Such factors are considered by the directors to represent a general inherent level of risk in relation to the going concern assumption albeit not quantifiable at this time. As at the point of authorising the accounts, and for the foreseeable future, the directors consider the going concern assumption to still be appropriate. |
FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2021 |
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2. | ACCOUNTING POLICIES - continued |
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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. |
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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. |
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Turnover 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, turnover is recognised only to the extent of the expenses recognised that are recoverable. |
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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. |
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An internally generated intangible asset arising from development is recognised only when all of the following have been demonstrated: |
- technical feasibility of completing the intangible so that it is available for use or sale |
- intention to complete the development to use it or sell it |
- the ability to use the intangible asset |
- how the intangible asset will generate probable future economic benefits |
- availability of adequate technical, financial and other resources to complete the development. |
- the ability to measure reliably the expenditure attribute to the intangible assets during its development |
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The amount initially recognised for internally generated assets is the sum of the expenditure incurred from the date when the intangible assets meets the recognition criteria listed above. Where no internally generated intangible assets can be recognised, development expenditure is recognised in profit and loss in the period in which it is incurred. |
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Subsequent to initial recognition, internally generated intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately. |
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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: |
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Software | 5 years straight line years |
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At each reporting date the group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. |
FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2021 |
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2. | ACCOUNTING POLICIES - continued |
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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 provided at the following annual rates in order to write off each asset over its estimated useful life. |
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Improvements to property | - Straight line over 12 years |
Plant and machinery | - Straight line over 4 years |
Fixtures and fittings | - Straight line over 3 years |
Motor vehicles | - Straight line over 4 years |
Computer equipment | - Straight line over 3 years |
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At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. |
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Financial instruments |
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from bank and other third parties, loan's to related parties and investments in ordinary shares. |
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Short term debtors and creditors are measured at the transaction price. Other financial instruments, including loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
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Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit or Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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 balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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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. |
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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. |
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Foreign currencies |
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. |
FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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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. |
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The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. |
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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. |
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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. |
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Government grants |
Government grants relating to the Coronavirus Job Retention Scheme are recognised in income in the period in which it becomes receivable under the performance model. |
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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. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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4. | INTANGIBLE FIXED ASSETS |
Software |
development |
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COST |
At 1 January 2021 |
and 31 December 2021 |
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NET BOOK VALUE |
At 31 December 2021 |
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At 31 December 2020 |
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As at the year end, capitalised software costs were not yet operational and therefore no amortisation has been charged. |
FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2021 |
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5. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 January 2021 |
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Additions |
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Disposals | ( |
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At 31 December 2021 |
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DEPRECIATION |
At 1 January 2021 |
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Charge for year |
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Eliminated on disposal | ( |
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At 31 December 2021 |
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NET BOOK VALUE |
At 31 December 2021 |
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At 31 December 2020 |
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Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2021 |
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Additions |
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Disposals | ( |
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At 31 December 2021 |
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DEPRECIATION |
At 1 January 2021 |
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Charge for year |
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Eliminated on disposal | ( |
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At 31 December 2021 |
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NET BOOK VALUE |
At 31 December 2021 |
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At 31 December 2020 |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
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FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2021 |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade creditors |
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Corporation tax |
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Social security and other taxes |
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Other creditors |
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Accruals and deferred income |
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8. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
2021 | 2020 |
£ | £ |
Within one year |
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Between one and five years |
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9. | PROVISIONS FOR LIABILITIES |
2021 | 2020 |
£ | £ |
Deferred tax | 54,599 | 35,347 |
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Deferred |
tax |
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Balance at 1 January 2021 |
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Provided during year |
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Balance at 31 December 2021 |
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10. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
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Ordinary | £1 | 7,500 | 7,500 |
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11. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2021 |
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12. | RELATED PARTY DISCLOSURES |
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The company premises at 4 & 5 Grosvenor Square, Southampton are rented from Michael J Lawton. In the year ended 31 December 2021 rent was paid to Michael J Lawton of £90,000 (2020: £105,000). |
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At the balance sheet date, £Nil (2020: £100,000) is owed to Michael J Lawton and £Nil (2020: £300,000) is owed to Nicholas M Lawton, both of whom are directors in the company. |
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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. |
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During the year, the company had management charges receivable of £132,036 (2020: £132,960) from Dragonfish Consulting Limited, a fellow group company. At the balance sheet date, £546,752 (2020: £277,292) is owed by Dragonfish Consulting Limited. |
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13. | POST BALANCE SHEET EVENTS |
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Post year end dividends totalling £660,000 were declared. |
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14. | ULTIMATE CONTROLLING PARTY |
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The ultimate controlling party is Michael J Lawton by virtue of his shareholding in the ultimate parent company. |
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The immediate parent company and ultimate parent company is Lawton Communications Group Limited, a company registered in England and Wales. |
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Lawton Communications Group Limited are the parent of the smallest and largest group for which consolidated financial statements are prepared that include the company. Copies of these consolidated accounts can be obtained from 4 & 5 Grosvenor Square, Southampton, SO15 2BE. |