Company Registration No. 04298345 (England and Wales)
DC DWEK CORPORATE FINANCE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
DC DWEK CORPORATE FINANCE LIMITED
COMPANY INFORMATION
Director
D C Dwek
Secretary
S Dwek
Company number
04298345
Registered office
41 Hamilton Gardens
London
NW8 9PX
Auditor
Wilson Wright LLP
Chartered Accountants
Thavies Inn House
3-4 Holborn Circus
London
EC1N 2HA
DC DWEK CORPORATE FINANCE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 6
Income statement
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 20
DC DWEK CORPORATE FINANCE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The director presents the strategic report for the year ended 31 December 2019.
Fair review of the business
A summary of the results of the year's trading is given on page 6.
2019 was a stable year compared to 2018. Revenues decreased slightly to £165,739 from 2018. At the end of the year there was a bad debt provision of £322,349 in the financial statements in respect of unpaid invoices and a further bad debt provision of £20,270 on loans which reflects the continued uncertainty over recovery of these monies. Advice was provided in the water, technology, telecommunications, energy, property and media sectors.
Principal risks and uncertainties
Management regularly review and agree policies for managing risks and uncertainties.
One of the main risks is liquidity risk, the risk that the company will not be able to meet its financial obligations as they fall due. The company's policy throughout the year has been to ensure it has adequate liquidity to meet its liabilities as and when they fall due by careful management of working capital.
Further, the company
has 2-4 clients at any one time. As such revenue is derived from a small number of key clients.
The company
maintains a minimum regulatory capital for Financial Conduct Authority purposes of €50,000 and in the event of the loss of revenue, costs and dividends will be reduced in order to maintain the minimum capital requirement.
At the date of the approval of these financial statements, there is an ongoing global coronavirus pandemic. Given the scale of this outbreak and consequent restrictions on global travel and the effect on business worldwide, it is not clear how this will impact the business in the coming year. The director however believes, that the business, given it is very streamlined and has limited costs is well placed to ride out the consequent issues and problems.
Key performance indicators
Key performance indicators are as follows:
2019
2018
2017
£
£
£
Revenue
165,739
187,750
175,250
Profit/(Loss) before tax
(11,679)
2,355
3,466
Net assets
75,964
86,155
85,183
DC DWEK CORPORATE FINANCE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
Statement by the director in perfomance of his statutory duties in accordance with s172(1) Companies Act 2006
The Board of Directors of DC Dwek Corporate Finance Limited (“DC Dwek CFL” or the “Company”) has always acted in good faith with its clients, advisors and partners and the regulatory and financial authorities. The Company endeavours to treat customers fairly and to only work with selected clients or partners that comply with Know your Client (KYC) and with Anti Money Laundering (AML) requirements and are fully transparent. DC Dwek CFL maintains confidentiality of client information according to the GDPR regulations and avoids or fully discloses any potential conflicts of interest in a timely manner.
The 2020 business plan for the Company focuses on diversifying the client base across three key sectors, telecom media and technology, water and renewable energy and real estate. The focus is on building businesses, financial advisory, restructuring and strategic transactions. In addition, joining company boards as a Non-Executive Director or Chairman is also a key target for 2020.
Since 2002, DC Dwek CFL has been regulated by the Financial Conduct Authority and its predecessor organisations for corporate finance advisory services. DC Dwek CFL has always behaved responsibly and will continuously adapt its business to the requirements of the market and to the regulatory environment.
D C Dwek
Director
14 April 2020
DC DWEK CORPORATE FINANCE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
The director presents his annual report and financial statements for the year ended 31 December 2019.
Principal activities
The principal activity of the company continued to be that of corporate finance.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
D C Dwek
Results and dividends
The results for the year are set out on page 7.
During the year dividends of £
nil
(201
8
- £
nil
) were paid.
Financial instruments
Credit risk
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Future developments
There are no major plans for future development.
Auditor
The auditors,
Wilson Wright LLP
will be proposed for re-appointment in accordance with Section 485 of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
D C Dwek
Director
14 April 2020
DC DWEK CORPORATE FINANCE LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
DC DWEK CORPORATE FINANCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DC DWEK CORPORATE FINANCE LIMITED
- 5 -
Opinion
We have audited the financial statements of DC Dwek Corporate Finance Limited
(the 'company')
for the year ended 31 December 2019 set out on pages 7 to 20. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 2019 and of its loss for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the
financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the director's r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
DC DWEK CORPORATE FINANCE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DC DWEK CORPORATE FINANCE LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the director's
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of director's remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's
r
esponsibilities
s
tatement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the director is responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to him in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Warren Baker FCA (Senior Statutory Auditor)
for and on behalf of Wilson Wright LLP
14 April 2020
Chartered Accountants and Statutory Auditors
Thavies Inn House
3-4 Holborn Circus
London
EC1N 2HA
DC DWEK CORPORATE FINANCE LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 7 -
2019
2018
Notes
£
£
Revenue
3
165,739
187,750
Direct costs
107
(72)
Gross profit
165,846
187,678
Administrative expenses
(177,704)
(185,596)
Operating (loss)/profit
4
(11,858)
2,082
Investment income
8
179
273
(Loss)/profit before taxation
(11,679)
2,355
Taxation
9
1,488
(1,383)
(Loss)/profit for the financial year
16
(10,191)
972
The income statement has been prepared on the basis that all operations are continuing operations.
DC DWEK CORPORATE FINANCE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2019
31 December 2019
- 8 -
2019
2018
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
10
1,688
2,251
Current assets
Trade and other receivables
12
195,541
123,897
Cash and cash equivalents
37,643
82,188
233,184
206,085
Current liabilities
14
(158,908)
(122,181)
Net current assets
74,276
83,904
Total assets less current liabilities
75,964
86,155
Equity
Called up share capital
15
13,000
13,000
Retained earnings
16
62,964
73,155
Total equity
75,964
86,155
The financial statements were approved and signed by the director and authorised for issue on 14 April 2020
D C Dwek
Director
Company Registration No. 04298345
DC DWEK CORPORATE FINANCE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 9 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2018
13,000
72,183
85,183
Year ended 31 December 2018:
Profit and total comprehensive income for the year
-
972
972
Balance at 31 December 2018
13,000
73,155
86,155
Year ended 31 December 2019:
Loss and total comprehensive income for the year
-
(10,191)
(10,191)
Balance at 31 December 2019
13,000
62,964
75,964
DC DWEK CORPORATE FINANCE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 10 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
19
(62,572)
(21,732)
Taxes paid
(1,312)
(1,583)
Net cash outflow from operating activities
(63,884)
(23,315)
Investing activities
Interest received
179
273
Net cash generated from investing activities
179
273
Financing activities
Net increase in borrowings
19,073
9,216
Net cash generated from financing activities
19,073
9,216
Net decrease in cash and cash equivalents
(44,632)
(13,826)
Cash and cash equivalents at beginning of year
82,188
96,014
Cash and cash equivalents at end of year
37,556
82,188
Relating to:
Cash at bank and in hand
37,643
82,188
Bank overdrafts included in creditors payable within one year
(87)
-
DC DWEK CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 11 -
1
Accounting policies
Company information
DC Dwek Corporate Finance Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
41 Hamilton Gardens, London, NW8 9PX.
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.
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.
1.2
Going concern
These financial statements are prepared on the going concern basis. The director has a reasonable expectation that the company will continue in operational existence for the foreseeable future. At the 31 December 2019 the company had outstanding debtors and accrued income of £512,823 and has made provisions of £322,349 against these amounts. In the event that these debtors did not settle the amounts due, a further £118,225 of bad debt provision would be required in the financial statements. The director is of the opinion that the funds, at least to the extent of the unprovided amounts will be received. In the event that the amounts are not received, the company has sufficient working capital and the director has undertaken not to withdraw the funds owed to him of £71,987 until such time as the debtors have paid and the company is in funds sufficiently.
In addition the director is aware that the ongoing coronavirus outbreak gives rise to material uncertainties in respect of future income generation, operation and cashflow, but given the business is very streamlined and has limited costs is well placed to ride out the consequent issues and problems.
1.3
Revenue
Turnover represents fees and disbursements charged in respect of services provided and
is recogni
se
d when the service is performed to the extent that it is probable that economic benefits will flow into the
c
ompany and excludes value added tax.
1.4
Property, plant and equipment
Property, plant and equipment
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:
Computer equipment
25% reducing balance
Fixtures, fittings & equipment
25% reducing balance
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 the statement of income
.
DC DWEK CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 12 -
1.5
Impairment of non-current assets
At each reporting 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.
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 and cash equivalents
Cash and cash equivalents 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 appl
ied
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.
DC DWEK CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 13 -
Basic financial assets
Basic financial assets, which include trade and other receivables 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.
Trade receivables
, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
The impairment loss 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
it
transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
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 trade and other payables and bank loans
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 receipts discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade payables
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
ccount
s 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 payables are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
DC DWEK CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless
they are included in a hedging arrangement
.
Derecognition of financial liabilities
Financial liabilities are derecognised when
, and only when,
the company’s obligations
are discharged, cancelled, or they expire.
1.8
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.
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 income statement 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.
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 income statement, 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
direct costs
or non-current 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.
DC DWEK CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Provision for doubtful debtors
The director regularly reviews the outstanding trade debtors and provides for balances that he considers may not be recovered in full.
3
Revenue
2019
2018
£
£
Turnover
Fees receivable
165,739
187,750
2019
2018
£
£
Other significant revenue
Interest income
179
273
2019
2018
£
£
Revenue analysed by geographical market
United Kingdom
165,739
187,750
4
Operating (loss)/profit
2019
2018
Operating (loss)/profit for the year is stated after charging:
£
£
Depreciation of owned property, plant and equipment
563
750
5
Auditor's remuneration
2019
2018
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the company's financial statements
2,000
2,000
For other services
All other non-audit services
5,940
6,350
DC DWEK CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 16 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Management
1
1
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
8,000
8,000
7
Director's remuneration
2019
2018
£
£
Remuneration for qualifying services
8,000
8,000
8
Investment income
2019
2018
£
£
Interest income
Interest on bank deposits
179
273
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
179
273
9
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
(1,400)
1,400
Adjustments in respect of prior periods
(88)
(17)
Total current tax
(1,488)
1,383
DC DWEK CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
9
Taxation
(Continued)
- 17 -
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
(Loss)/profit before taxation
(11,679)
2,355
Expected tax (credit)/charge based on the effective rate of corporation tax in the UK of 19.00% (2018: 19.00%)
(2,219)
447
Tax effect of expenses that are not deductible in determining taxable profit
714
722
Permanent capital allowances in excess of depreciation
107
143
Under/(over) provided in prior years
(88)
(17)
Other tax adjustments
(2)
88
Taxation for the year
(1,488)
1,383
10
Property, plant and equipment
Computer equipment
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 January 2019 and 31 December 2019
11,388
7,806
19,194
Depreciation and impairment
At 1 January 2019
9,316
7,627
16,943
Depreciation charged in the year
518
45
563
At 31 December 2019
9,834
7,672
17,506
Carrying amount
At 31 December 2019
1,554
134
1,688
At 31 December 2018
2,071
180
2,251
11
Financial instruments
2019
2018
£
£
Carrying amount of financial assets
Measured at undiscounted amounts
112,487
110,070
Carrying amount of financial liabilities
Measured at undiscounted amounts
88,034
67,683
DC DWEK CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 18 -
12
Trade and other receivables
2019
2018
£
£
Amounts falling due within one year:
Trade receivables
111,143
109,927
Corporation tax recoverable
1,400
-
Other receivables
1,344
144
Prepayments and accrued income
81,654
13,826
195,541
123,897
Trade receivables disclosed above are measured at amortised cost.
13
Borrowings
2019
2018
£
£
Bank overdrafts
87
-
Amount owed to the director
71,987
52,827
72,074
52,827
Payable within one year
72,074
52,827
14
Current liabilities
2019
2018
Notes
£
£
Borrowings
13
72,074
52,827
Trade payables
7,230
6,126
Corporation tax
-
1,400
Other taxation and social security
70,874
53,098
Other payables
2,730
2,730
Accruals and deferred income
6,000
6,000
158,908
122,181
15
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
13,000 Ordinary shares of £1 each
13,000
13,000
DC DWEK CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 19 -
16
Retained earnings
2019
2018
£
£
At the beginning of the year
73,155
72,183
(Loss)/profit for the year
(10,191)
972
At the end of the year
62,964
73,155
17
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2019
2018
£
£
Aggregate compensation
8,000
8,000
Transactions with related parties
During the year the company entered into the following transactions with related parties:
During the year fees were charged to the company of £
nil
(20
18
- £
15
,000) in respect of consultancy provided by S Dwek. £
2,000
(201
8
- £
2,000
) was outstanding at
the
year end. S Dwek is the wife of the Director.
During the year fees and expenses were charged to Subsea Infrastructure Limited of £
144,000
(201
8
- £
144,000
). £
399,433
(201
8
- £
275,877
) was outstanding at the year end of which
£302,369 (2018 -
£
179,923)
has been provided for. Administrative expenses include a bad debt
charge
amounting to £
122,446
(201
8 - £107,113
) in respect of amounts
due from
Subsea Infrastructure Limited. D
C Dwek is a director and shareholder of Subsea Infrastructure Limited.
During the year fees were charged to Vidmed Services UK Limited of £
20,000
(201
8
- £
20
,000). £
56,000
(201
8
- £
40,400
) was outstanding at the year end of which £
40,250 (2018 - £26,250)
was provided for. Administrative expenses include a bad debt
charge
amounting to £
14,000
(201
8 - £16,250
) in respect of amounts due from Vidmed Services UK Limited. D
C Dwek is a director of Vidmed Services UK Limited.
18
Directors' transactions
Dividends totalling £nil (2018 - £nil) were paid in the year in respect of shares held by the company's director.
As at the year end £71,987 (2018 - £52,827) was outstanding to D C Dwek.
DC DWEK CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 20 -
19
Cash absorbed by operations
2019
2018
£
£
(Loss)/Profit for the year after tax
(10,191)
972
Adjustments for:
Taxation (credited)/charged
(1,488)
1,383
Investment income
(179)
(273)
Depreciation and impairment of property, plant and equipment
563
750
Movements in working capital:
Increase in trade and other receivables
(70,244)
(44,592)
Increase in trade and other payables
18,967
20,028
Cash absorbed by operations
(62,572)
(21,732)
20
Analysis of changes in net funds
1 January 2019
Cash flows
31 December 2019
£
£
£
Cash at bank and in hand
82,188
(44,545)
37,643
Bank overdrafts
-
(87)
(87)
82,188
(44,632)
37,556
2019-12-31
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