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Financial Statements |
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for the Period |
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31st December 2018 to 30th June 2020 |
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for |
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MM - Eye Limited |
REGISTERED NUMBER:
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Financial Statements |
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for the Period |
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31st December 2018 to 30th June 2020 |
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for |
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MM - Eye Limited |
MM - Eye Limited (Registered number: 06379175) |
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Contents of the Financial Statements |
for the Period 31st December 2018 to 30th June 2020 |
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Page |
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Company Information | 1 |
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Statement of Financial Position | 2 |
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Notes to the Financial Statements | 3 |
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MM - Eye Limited |
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Company Information |
for the Period 31st December 2018 to 30th June 2020 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants |
& Statutory Auditors |
Stag House |
Old London Road |
Hertford |
Hertfordshire |
SG13 7LA |
MM - Eye Limited (Registered number: 06379175) |
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Statement of Financial Position |
30th June 2020 |
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30.6.20 | 30.12.18 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
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CURRENT ASSETS |
Stocks |
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Debtors | 5 |
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Cash in hand |
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CREDITORS |
Amounts falling due within one year | 6 |
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NET CURRENT (LIABILITIES)/ASSETS | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
( |
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CREDITORS |
Amounts falling due after more than one
year |
7 |
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NET (LIABILITIES)/ASSETS | ( |
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CAPITAL AND RESERVES |
Called up share capital | 9 |
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Retained earnings | ( |
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SHAREHOLDERS' FUNDS | ( |
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In accordance with Section 444 of the Companies Act 2006, the Statement of Profit and Loss and Comprehensive Income has not been delivered. |
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The financial statements were approved and authorised by the Board of Directors and authorised for issue on
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MM - Eye Limited (Registered number: 06379175) |
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Notes to the Financial Statements |
for the Period 31st December 2018 to 30th June 2020 |
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1. | STATUTORY INFORMATION |
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MM-Eye Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" (March 2018) and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
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Going concern |
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The company has incurred a loss in the period of £463,820 primarily due to the Exceptional item in note 4 to the financial statements. Following a management buy out on 30th June 2020, £794,079 of amounts owed by group undertakings are no longer considered recoverable and have been written off. As a result of the exceptional loss the company had net current liabilities of £54,154 and net liabilities of £201,882 on 30th June 2020. |
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The company's operating profit for the period ended 30th June 2020 was £370,188 and the directors have made available forecasts covering a period of more than 12 months from the date of the signing of the financial statements. The projections demonstrate that the company can continue to trade with sufficient working capital and the directors have a reasonable expectation that the company will have adequate resources to continue in operational existence for the foreseeable future. |
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In making this assessment the directors have considered the impact of the coronavirus outbreak ("COVID-19") on the company, its employees, clients and third-party suppliers. |
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While there is uncertainty about the impact that COVID-19 will have on the global economy the directors do not believe it impacts the use of the going concern basis of preparation nor does it cast significant doubt about the company's ability to continue as a going concern for a period of twelve months from the date of the financial statements being authorised for issue. |
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The directors consider the company to be sufficiently robust that its operations will not be significantly affected and that it will be able to generate and maintain sufficient levels of cash in order to meet its overhead commitments for at least the period under review. The company therefore continues to adopt the going concern basis in preparing its financial statements. |
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Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
MM - Eye Limited (Registered number: 06379175) |
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Notes to the Financial Statements - continued |
for the Period 31st December 2018 to 30th June 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Significant judgements and estimates |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. The nature of estimation means that actual outcomes could differ from those estimates. The following judgements have had a significant effect on amounts recognised in the financial statements: |
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- The company considers the recoverability of its work in progress and the associated provisioning required. When calculating the work in progress management considers the level of after date costs based on estimates and assumptions. |
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- The company makes estimates of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. |
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Turnover |
Turnover represents the amounts receivable in respect of the provision of services which fall within the company's ordinary activities stated net of value added tax. |
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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 cost 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. |
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Tangible fixed assets |
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. |
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Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
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Computer equipment | - 20% on cost |
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Government grants |
Revenue grants to assist general activities are recognised in the statement of profit and loss account in the period in which they are received. Government assistance is provided in the form of the job retention scheme totalling £30,011, (2018:£Nil) and under the bounce back loan scheme. Under the bounce back loan scheme interest which is covered by the government is shown in other income. |
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Stocks |
Work in progress is valued at the lower of cost and net realisable value. Work in progress is valued at direct cost less amounts transferred to the profit and loss account in respect of work carried out, less foreseeable losses and payments on account. Direct cost is calculated as fieldwork costs, subcontractor and other specific costs but excludes indirect overheads and interest. |
MM - Eye Limited (Registered number: 06379175) |
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Notes to the Financial Statements - continued |
for the Period 31st December 2018 to 30th June 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Financial instruments |
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
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Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. |
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Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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. |
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Debtors |
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment. |
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Cash and cash equivalents |
Cash and cash equivalents are represented by cash in hand and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
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Creditors |
Basic short term financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
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Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
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MM - Eye Limited (Registered number: 06379175) |
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Notes to the Financial Statements - continued |
for the Period 31st December 2018 to 30th June 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Foreign currencies |
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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Operating lease commitments |
Rentals paid under operating leases are charged to the profit and loss on a straight line basis over the period of the lease. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the period was
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4. | TANGIBLE FIXED ASSETS |
Computer |
equipment |
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COST |
At 31st December 2018 |
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Additions |
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At 30th June 2020 |
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DEPRECIATION |
At 31st December 2018 |
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Charge for period |
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At 30th June 2020 |
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NET BOOK VALUE |
At 30th June 2020 |
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At 30th December 2018 |
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5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.20 | 30.12.18 |
£ | £ |
Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
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Prepayments and accrued income |
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MM - Eye Limited (Registered number: 06379175) |
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Notes to the Financial Statements - continued |
for the Period 31st December 2018 to 30th June 2020 |
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6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.20 | 30.12.18 |
£ | £ |
Bank loans and overdrafts |
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Other loans |
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Trade creditors |
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Corporation tax |
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Social security and other taxes |
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Other creditors |
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Accruals and deferred income |
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7. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
30.6.20 | 30.12.18 |
£ | £ |
Bank loans - 1-2 years |
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Bank loans - 2-5 years |
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Bank loans due more than |
5 years by instalments |
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Other loans - 1-2 years |
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Amounts falling due in more than five years: |
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Repayable by instalments |
Bank loans due more than |
5 years by instalments | 9,166 | - |
9,166 | - |
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8. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
30.6.20 | 30.12.18 |
£ | £ |
Within one year |
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Between one and five years |
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9. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.20 | 30.12.18 |
value: | £ | £ |
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Ordinary £1 Shares | £1 | 200,000 | 200,000 |
MM - Eye Limited (Registered number: 06379175) |
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Notes to the Financial Statements - continued |
for the Period 31st December 2018 to 30th June 2020 |
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10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified but includes a material uncertainty relating to going concern. |
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Ralph Sears (Senior Statutory Auditor) |
for and on behalf of Meyer Williams |
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11. | CONTINGENT LIABILITIES |
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During the period the company was party to a guarantee and debenture dated 24th May 2018 in respect of a finance arrangement entered into during the year by its parent company HPS Group Limited. This charge was satisfied on 1st June 2020. |
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12. | RELATED PARTY DISCLOSURES |
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The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
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13. | ULTIMATE PARENT COMPANY |
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The ultimate parent company until 30th June 2020 was HPS (Group) Limited whose registered office is 6th Floor Charlotte Building, 17 Gresse Street, London, W1T 1QL. Since this date the ultimate parent company is MM-Eye Ventures Limited whose registered office is Suite 2, Fountain House, 1A Elm Park, Stanmore, England, HA7 4AU |