The Writer Limited
Unaudited Financial Statements
For the year ended 31 December 2022
Pages for Filing with Registrar
Company Registration No. 04114384 (England and Wales)
The Writer Limited
Company Information
Directors
M Hennessey
I Astley
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
Statement of changes in equity
3
Notes to the financial statements
4 - 12
The Writer Limited
Balance Sheet
As at 31 December 2022
Page 1
2022
2021
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
61,060
29,020
Investments
5
6,204
6,204
67,264
35,224
Current assets
Debtors
7
1,381,263
1,540,379
Cash at bank and in hand
190,138
384,858
1,571,401
1,925,237
Creditors: amounts falling due within one year
8
(957,059)
(1,299,038)
Net current assets
614,342
626,199
Total assets less current liabilities
681,606
661,423
Provisions for liabilities
(50,000)
(37,009)
Net assets
631,606
624,414
Capital and reserves
Called up share capital
9
113
113
Share premium account
79,346
79,346
Capital redemption reserve
5
5
Own shares
(6)
(6)
Profit and loss reserves
552,148
544,956
Total equity
631,606
624,414
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 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The 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 2022
Page 2
The financial statements were approved by the board of directors and authorised for issue on 21 September 2023 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 2022
Page 3
Share capital
Share premium account
Capital redemption reserve
Own shares
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
As restated for the period ended 31 December 2021:
Balance at 1 January 2021
113
79,346
5
(6)
404,197
483,655
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
-
-
284,759
284,759
Dividends
-
-
-
-
(144,000)
(144,000)
Balance at 31 December 2021
113
79,346
5
(6)
544,956
624,414
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
-
73,799
73,799
Dividends
-
-
-
-
(66,607)
(66,607)
Balance at 31 December 2022
113
79,346
5
(6)
552,148
631,606
The Writer Limited
Notes to the Financial Statements
For the year ended 31 December 2022
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 amounts 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.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for 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 it is probable will be recovered.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
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.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
The Writer Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 5
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:
Domain name
20% straight line
1.6
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 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.
1.7
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.
1.8
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.
The Writer Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 6
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.
1.9
Cash at bank and in hand
Cash and cash equivalents 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.
1.10
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 payments 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. Amounts 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.
The Writer Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 7
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction 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.
1.12
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.
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.
1.13
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
The Writer Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 8
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leases asset are consumed.
1.17
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 in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
29
20
The Writer Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 9
3
Intangible fixed assets
Other
£
Cost
At 1 January 2022 and 31 December 2022
2,581
Amortisation and impairment
At 1 January 2022 and 31 December 2022
2,581
Carrying amount
At 31 December 2022
At 31 December 2021
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2022
192,303
158,517
350,820
Additions
10,595
51,350
61,945
At 31 December 2022
202,898
209,867
412,765
Depreciation and impairment
At 1 January 2022
186,320
135,481
321,801
Depreciation charged in the year
15,037
14,867
29,904
At 31 December 2022
201,357
150,348
351,705
Carrying amount
At 31 December 2022
1,541
59,519
61,060
At 31 December 2021
5,983
23,037
29,020
5
Fixed asset investments
2022
2021
£
£
Investments
6,204
6,204
The Writer Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
5
Fixed asset investments
(Continued)
Page 10
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2022 & 31 December 2022
7,104
Impairment
At 1 January 2022 & 31 December 2022
900
Carrying amount
At 31 December 2022
6,204
At 31 December 2021
6,204
6
Subsidiaries
Details of the company's subsidiaries at 31 December 2022 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
The Writer USA, Inc*
U.S.A
Ordinary
100.00
Tungtree Communications Limited
England & Wales
Ordinary
100.00
*formerly called The Writer Inc.
7
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
330,241
404,215
Amounts due from group undertakings
909,630
947,507
Other debtors
138,295
188,657
1,378,166
1,540,379
Deferred tax asset
3,097
1,381,263
1,540,379
Included within the other debtors balance is £nil (2021: £22,530) in relation to debtors due in more than 1 year.
The Writer Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 11
8
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
52,630
45,708
Corporation tax
136
54,510
Other taxation and social security
246,249
316,381
Other creditors
105,879
218,975
Accruals and deferred income
552,165
663,464
957,059
1,299,038
9
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 0.01p each
900,008
900,008
90
90
Deferred Shares of 0.01p each
26,307
26,307
3
3
B Ordinary Shares of 0.01p each
152,633
152,633
15
15
C Ordinary Shares of 1p each
500
500
5
5
1,079,448
1,079,448
113
113
10
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:
2022
2021
£
£
Within one year
55,199
94,626
Between two and five years
15,771
55,199
110,397
11
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 company made purchases from a company with a mutual director of £157,000 (2021: £nil). There are £nil (2021: £nil) amounts outstanding at the period end.
During the year, the company paid dividends of £66,607 (2021: £144,000) to its directors. There is £66,607 (2021: £144,000) owed by the company to its directors at the period end.
The Writer Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 12
12
Parent company
The controlling party is M. Hennessey by virtue of his majority shareholding in the company.
13
Prior year adjustment
The prior year adjustment was made to correct the accounting treatment of the purchase of own shares to be held on treasury that occurred in 2017. This corrected the bought forward equity position as at 1 January 2021 in these financial statement.
Reconciliation of changes in equity
The prior period adjustments only gave rise to changes to equity.
2022
2021
£
£
Analysis of the effect upon equity
Share capital
-
6
Share premium
-
23,690
Own shares reserve
-
(6)
Capital redemption
-
(23,696)
Profit and loss reserves
-
6
-
-
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