Company registration number 06695582 (England and Wales)
CAPSTONE GLOBAL LIBRARY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
CAPSTONE GLOBAL LIBRARY LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
CAPSTONE GLOBAL LIBRARY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Current assets
Stocks
397,557
434,772
Debtors
6
519,725
570,470
Cash at bank and in hand
770,266
996,205
1,687,548
2,001,447
Creditors: amounts falling due within one year
7
(389,040)
(443,284)
Net current assets
1,298,508
1,558,163
Creditors: amounts falling due after more than one year
8
(863,647)
(844,033)
Net assets
434,861
714,130
Capital and reserves
Called up share capital
9
100
100
Other reserves
8,738,435
8,738,435
Profit and loss reserves
(8,303,674)
(8,024,405)
Total equity
434,861
714,130
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 26 June 2023
Mr R Coughlan
Director
Company Registration No. 06695582
CAPSTONE GLOBAL LIBRARY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Share capital
Capital contribution
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2021
100
8,738,435
(7,947,067)
791,468
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
-
(77,338)
(77,338)
Balance at 31 December 2021
100
8,738,435
(8,024,405)
714,130
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(279,269)
(279,269)
Balance at 31 December 2022
100
8,738,435
(8,303,674)
434,861
CAPSTONE GLOBAL LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
1
Accounting policies
Company information
Capstone Global Library Limited is a private company limited by shares incorporated in England and Wales. The registered office is Shaw Gibbs Limited, 264 Banbury Road, Oxford, OX2 7DY.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary 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
The company is reliant on continued support from its parent company which has been demonstrated by a letter of support received from Coughlan Companies LLC, a company registered in the United States of America.true
After making enquires and considering the uncertainties, the director has a reasonable expectation that the company has adequate resource to continue in operational existence for the foreseeable future. The director has also considered the implications of the cost of living crisis and the war in Ukraine on the business and, whilst he accepts that the ongoing situations present a risk to the business, this is not considered to be an overall threat to its going concern status and therefore the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax.
Revenue from the sale of books is recognised when the significant risks and rewards of ownership of the books have passed to the buyer (usually on dispatch of the books), 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.
1.4
Pre-publication costs
Publication costs include one time expenses associated with developing and producing new or revised book publications, which include editorial expenses, author fees, prepress, photograph expenses, title right charges, royalty fees and any other costs incurred up to completion of the publication. Pre-publication costs are amortised over a three-year period, which approximates the lives of the related book publications, using a straight line method, which approximates the estimated sales cycle of the related books.
Disposals represent pre-publication costs of titles which are no longer in print.
Amortisation charges in respect of pre-publication costs are accounted for as a direct cost of sale.
Costs incurred in the UK but relating to future US title revenue streams are charged to the intercompany account on a monthly basis.
Pre-publication costs
3 years straight line
CAPSTONE GLOBAL LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
1.5
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:
Equipment
3 - 10 years straight line
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on purchase costs on a FIFO basis.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
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.
1.8
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.
CAPSTONE GLOBAL LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
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.
1.9
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable.
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.
1.11
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.
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
1.14
Foreign exchange
Assets, liabilities and transactions in foreign currencies are principally held between group companies and are translated into sterling at the rates agreed and fixed between group companies. The exchange rates agreed and fixed between the group companies are linked with published exchange rates. Exchange differences are taken into account in arriving at the operating profit.
1.15
Advances of royalties to authors are included within trade debtors when the advance is paid, less any provision required to adjust the advance to its net realisable value.
CAPSTONE GLOBAL LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 6 -
1.16
Product development allocations
The company does not incur any direct product development spend on new publishing lines. Content is licensed from its US parent company on an Intercompany royalty basis.
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock valuation and obsolescence
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on purchase costs on FIFO basis. Estimated selling price less costs to complete and sell, includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires estimates to be made, which include the forecasted customer demand, the promotional, competitive and economic environment as well as the ageing of stock. These variables are monitored by the director and a provision is in place to mitigate the relevant risks.
Returns provision
Returns provisions are accounted for where the company has committed to offer refunds on returns over a certain period. The director determines the relevant provision by using the historic rate of returns for the relevant products.
Useful economic life of tangible fixed assets
The useful economic lives of tangible fixed assets have been derived from the judgement of the director, using his best estimate of the write-down period.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
13
13
CAPSTONE GLOBAL LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
4
Intangible fixed assets
Pre-publication costs
£
Cost
At 1 January 2022
64,006
Disposals
(60,571)
At 31 December 2022
3,435
Amortisation and impairment
At 1 January 2022
64,006
Disposals
(60,571)
At 31 December 2022
3,435
Carrying amount
At 31 December 2022
At 31 December 2021
The above disposals represent pre-publication costs of titles which are no longer in print.
5
Tangible fixed assets
Equipment
£
Cost
At 1 January 2022
111,347
Disposals
(65,346)
At 31 December 2022
46,001
Depreciation and impairment
At 1 January 2022
111,347
Eliminated in respect of disposals
(65,346)
At 31 December 2022
46,001
Carrying amount
At 31 December 2022
At 31 December 2021
CAPSTONE GLOBAL LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
408,800
487,109
Other debtors
110,925
83,361
519,725
570,470
7
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
77,071
148,479
Other creditors
311,969
294,805
389,040
443,284
8
Creditors: amounts falling due after more than one year
2022
2021
£
£
Amounts owed to group undertakings
863,647
844,033
9
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
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
£
£
Operating leases
3,974
37,148
3,974
37,148
CAPSTONE GLOBAL LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
(Continued)
- 9 -
11
Related party transactions
The company has taken advantage of the exemptions provided by section 33 under FRS102 not to disclose transactions and outstanding balances with its parent company and fellow wholly owned subsidiaries.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Samantha Daniels
Statutory Auditor:
Shaw Gibbs (Audit) Limited
2022-12-312022-01-01false27 June 2023CCH SoftwareCCH Accounts Production 2023.100No description of principal activityThis audit opinion is unqualifiedMr R CoughlanMr R Coughlan066955822022-01-012022-12-31066955822022-12-31066955822021-12-3106695582core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3106695582core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3106695582core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3106695582core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-3106695582core:CurrentFinancialInstruments2022-12-3106695582core:CurrentFinancialInstruments2021-12-3106695582core:ShareCapital2022-12-3106695582core:ShareCapital2021-12-3106695582core:OtherMiscellaneousReserve2022-12-3106695582core:OtherMiscellaneousReserve2021-12-3106695582core:RetainedEarningsAccumulatedLosses2022-12-3106695582core:RetainedEarningsAccumulatedLosses2021-12-3106695582core:ShareCapital2020-12-3106695582core:RetainedEarningsAccumulatedLosses2020-12-3106695582bus:CompanySecretaryDirector12022-01-012022-12-3106695582core:RetainedEarningsAccumulatedLosses2021-01-012021-12-31066955822021-01-012021-12-3106695582core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3106695582core:IntangibleAssetsOtherThanGoodwill2022-01-012022-12-3106695582core:PatentsTrademarksLicencesConcessionsSimilar2022-01-012022-12-3106695582core:ComputerEquipment2022-01-012022-12-3106695582core:IntangibleAssetsOtherThanGoodwill2021-12-3106695582core:IntangibleAssetsOtherThanGoodwill2022-12-3106695582core:IntangibleAssetsOtherThanGoodwill2021-12-3106695582core:OtherPropertyPlantEquipment2021-12-3106695582core:OtherPropertyPlantEquipment2022-12-3106695582core:OtherPropertyPlantEquipment2022-01-012022-12-3106695582core:OtherPropertyPlantEquipment2021-12-3106695582core:WithinOneYear2022-12-3106695582core:WithinOneYear2021-12-3106695582core:Non-currentFinancialInstruments2022-12-3106695582core:Non-currentFinancialInstruments2021-12-3106695582bus:PrivateLimitedCompanyLtd2022-01-012022-12-3106695582bus:SmallCompaniesRegimeForAccounts2022-01-012022-12-3106695582bus:FRS1022022-01-012022-12-3106695582bus:Audited2022-01-012022-12-3106695582bus:Director12022-01-012022-12-3106695582bus:CompanySecretary12022-01-012022-12-3106695582bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP