Company Registration No. 02821180 (England and Wales)
Frost and Reed Limited
Financial statements
for the year ended 31 October 2021
Pages for filing with the Registrar
Frost and Reed Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
Frost and Reed Limited
Statement of financial position
As at 31 October 2021
Page 1
2021
2020
Notes
£
£
£
£
Current assets
Stocks
164,379
164,379
Debtors
135,228
135,228
299,607
299,607
Creditors: amounts falling due within one year
4
(856,887)
(851,887)
Net current liabilities
(557,280)
(552,280)
Capital and reserves
Called up share capital
5
207
207
Share premium account
250,146
250,146
Profit and loss reserves
(807,633)
(802,633)
Total equity
(557,280)
(552,280)
The directors of the company have elected not to include a copy of the income statement 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 22 June 2022 and are signed on its behalf by:
Martyn Rose
Director
Company Registration No. 02821180
Frost and Reed Limited
Notes to the financial statements
For the year ended 31 October 2021
Page 2
1
Accounting policies
Company information
Frost and Reed Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
7 Trebeck Street, Mayfair, London, W1J 7LU.
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 disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the
Companies Act 2006 not to prepare consolidated accounts. The
financial statements
present information about the company as an individual entity and not about its group
.
Frost and Reed Limited is a wholly owned subsidiary of Martyn Rose Limited and the results of Frost and Reed Limited are included in the consolidated financial statements of Martyn Rose Limited which are available from 7 Trebeck Street, Mayfair, London, W1J 7LU.
1.2
Going concern
The financial statements have been prepared on the going concern basis, notwithstanding net liabilities of £
true
557,680
(20
20
: £
552,280
) which the director
s
believe to be appropriate for the following reasons. The company is dependent for its working capital on funds provided to it by
Martyn Rose Limited who have
indicated that for at least 12 months from the date of approval of these financial statements
they
will continue to make available such funds as are needed by the company and in particular will not seek repayment of the amounts currently made available. The director
s
consider that this should enable the company to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due for payment. As with any company placing reliance on
related entities
for financial support, the director
s
acknowledge that there can be no certainty that this support will continue
beyond the agreed 12 months
although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.
1.3
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, those overheads that have been incurred in bringing the stocks to their present location and condition.
Frost and Reed Limited
Notes to the financial statements (continued)
For the year ended 31 October 2021
1
Accounting policies (continued)
Page 3
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.4
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand
and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.5
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Frost and Reed Limited
Notes to the financial statements (continued)
For the year ended 31 October 2021
1
Accounting policies (continued)
Page 4
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
,
and
loans from
fellow group companies are
initially recognised at transaction price.
Financial liabilities classified as payable within one year are not amortised.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.6
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.7
Taxation
The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax assets are recognised when tax paid exceeds the tax payable.
Current tax
Current tax is based on taxable profit for the year. Taxable profit differs from total comprehensive income because it excludes items of income or expense that are taxable or deductible in other periods. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date.
Frost and Reed Limited
Notes to the financial statements (continued)
For the year ended 31 October 2021
1
Accounting policies (continued)
Page 5
Deferred tax
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is not discounted.
Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits.
Current and deferred tax is charged or credited in profit or loss, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity.
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
2
2
Frost and Reed Limited
Notes to the financial statements (continued)
For the year ended 31 October 2021
Page 6
4
Creditors: amounts falling due within one year
2021
2020
£
£
Amounts owed to group undertakings
844,728
839,728
Other creditors
12,159
12,159
856,887
851,887
5
Called up share capital
2021
2020
£
£
Ordinary share capital
Issued and fully paid
207 Ordinary shares of £1 each
207
207
6
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 Lucy Brennan and the auditor was Saffery Champness LLP.
Frost and Reed Limited
Notes to the financial statements (continued)
For the year ended 31 October 2021
Page 7
7
Related party transactions
The company has taken advantage of the exemptions available under Financial Reporting Standard 102 Section 33 whereby it has not disclosed transactions with group companies on the grounds that consolidated financial statements are prepared by the ultimate parent company.
8
Parent company
The ultimate controlling party is Martyn Rose.
The immediate parent company is Martyn Rose Limited. The consolidated financial statements of Martyn Rose Limited include Frost and Reed Limited and can be obtained from the registered office of Martyn Rose Limited, 71 Queen Victoria Street, London, EC4V 4BE.