The Writer Limited
Unaudited Financial Statements
For Filing with Registrar
For the year ended 31 December 2018
Company Registration No. 04114384 (England and Wales)
The Writer Limited
Company Information
Directors
M Hennessey
I Astley
S Mitchell
R Wangen-Jones
(Appointed 1 October 2018)
A Varela
(Appointed 14 May 2019)
Company number
04114384
Registered office
Charlotte Building
17 Gresse Street
London
W1T 1QL
Accountants
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
The Writer Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
4 - 12
The Writer Limited
Balance Sheet
As at 31 December 2018
Page 1
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
5
79,110
141,449
Investments
6
6,204
6,204
85,314
147,653
Current assets
Debtors
8
1,508,831
1,554,648
Cash at bank and in hand
347,499
460,749
1,856,330
2,015,397
Creditors: amounts falling due within one year
9
(1,241,055)
(1,336,024)
Net current assets
615,275
679,373
Total assets less current liabilities
700,589
827,026
Provisions for liabilities
(12,805)
(11,243)
Net assets
687,784
815,783
Capital and reserves
Called up share capital
10
107
107
Share premium account
55,656
55,656
Capital redemption reserve
23,701
23,701
Profit and loss reserves
608,320
736,319
Total equity
687,784
815,783
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
The Writer Limited
Balance Sheet (Continued)
As at 31 December 2018
Page 2
The financial statements were approved by the board of directors and authorised for issue on 30 September 2019 and are signed on its behalf by:
M Hennessey
Director
Company Registration No. 04114384
The Writer Limited
Statement of Changes in Equity
For the year ended 31 December 2018
Page 3
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 December 2016
113
79,346
5
1,127,351
1,206,815
Period ended 31 December 2017:
Loss and total comprehensive income for the period
-
-
-
(37,959)
(37,959)
Dividends
-
-
-
(329,376)
(329,376)
Share buy back
10
(6)
(23,690)
23,696
(23,697)
(23,697)
Balance at 31 December 2017
107
55,656
23,701
736,319
815,783
Period ended 31 December 2018:
Profit and total comprehensive income for the period
-
-
-
42,003
42,003
Dividends
-
-
-
(170,002)
(170,002)
Balance at 31 December 2018
107
55,656
23,701
608,320
687,784
The Writer Limited
Notes to the Financial Statements
For the year ended 31 December 2018
Page 4
1
Accounting policies
Company information
The Writer Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Charlotte Building, 17 Gresse Street, London, W1T 1QL.
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
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 the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
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.
1.3
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 length of lease
Fixtures, fittings & equipment
Over 3 years
The Writer Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2018
1
Accounting policies
(Continued)
Page 5
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
.
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash at bank and in hand
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.
The Writer Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2018
1
Accounting policies
(Continued)
Page 6
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.
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.
The Writer Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2018
1
Accounting policies
(Continued)
Page 7
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.
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
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
The Writer Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2018
1
Accounting policies
(Continued)
Page 8
1.13
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
Exceptional costs
2018
2017
£
£
Restructuring costs
51,346
-
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 32 (2017 - 35).
4
Intangible fixed assets
Other
£
Cost
At 1 January 2018 and 31 December 2018
2,581
Amortisation and impairment
At 1 January 2018 and 31 December 2018
2,581
Carrying amount
At 31 December 2018
-
At 31 December 2017
-
The Writer Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2018
Page 9
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2018
225,703
221,381
447,084
Disposals
-
(156,452)
(156,452)
Reclassification
(31,084)
31,084
-
Additions
-
13,021
13,021
At 31 December 2018
194,619
109,034
303,653
Depreciation and impairment
At 1 January 2018
122,733
182,902
305,635
Eliminated in respect of disposals
-
(142,783)
(142,783)
Reclassification
(7,774)
7,774
-
Depreciation charged in the year
24,662
37,029
61,691
At 31 December 2018
139,621
84,922
224,543
Carrying amount
At 31 December 2018
54,998
24,112
79,110
At 31 December 2017
102,970
38,479
141,449
6
Fixed asset investments
2018
2017
£
£
Investments
6,204
6,204
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2018 & 31 December 2018
6,204
Carrying amount
At 31 December 2018
6,204
At 31 December 2017
6,204
The Writer Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2018
Page 10
7
Subsidiaries
Details of the company's subsidiaries at 31 December 2018 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
The Writer Inc
U.S.A
Language Consultancy
Ordinary
100.00
-
Tungtree Communications Limited
England & Wales
Language Consultancy
Ordinary
100.00
-
8
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
578,685
667,409
Corporation tax recoverable
10,102
-
Amounts due from group undertakings
469,172
429,220
Other debtors
450,872
458,019
1,508,831
1,554,648
Included within the other debtors balance is £79,385 (2017: £79,385) in relation to debtors due in more than 1 year.
9
Creditors: amounts falling due within one year
2018
2017
£
£
Trade creditors
124,799
110,748
Amounts due to group undertakings
19,040
190,940
Corporation tax
-
10,472
Other taxation and social security
199,388
185,809
Other creditors
897,828
838,055
1,241,055
1,336,024
The Writer Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2018
Page 11
10
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
900,008 Ordinary Shares of 0.01p each
90
90
26,307 Deferred Shares of 0.01p each
3
3
100,001 B Ordinary Shares of 0.01p each
10
10
400 C Ordinary Shares of 1p each
4
4
107
107
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2018
2017
£
£
Within one year
236,250
236,250
Between two and five years
275,625
511,875
511,875
748,125
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2018
2017
£
£
Within one year
103,886
103,886
Between two and five years
112,429
216,429
216,315
320,315
The Writer Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2018
Page 12
12
Related party transactions
The company has taken advantage of the FRS 102 exemption available, whereby it has not disclosed transactions with any wholly owned subsidiary undertaking.
During the period, the aggregate dividends to directors was £170,002 (2017: £329,376).
13
Parent company
The controlling party is M. Hennessey by virtue of his majority shareholding in the company.
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M Hennessey
I Astley
S Mitchell
N Gundry
R Wangen-Jones
A Varela
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