Company Registration No. 06695582 (England and Wales)
CAPSTONE GLOBAL LIBRARY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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 - 8
CAPSTONE GLOBAL LIBRARY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2020
31 December 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
4
2,734
12,907
Current assets
Stocks
662,510
734,243
Debtors
5
509,434
679,733
Cash at bank and in hand
798,976
723,962
1,970,920
2,137,938
Creditors: amounts falling due within one year
6
(410,847)
(516,062)
Net current assets
1,560,073
1,621,876
Total assets less current liabilities
1,562,807
1,634,783
Creditors: amounts falling due after more than one year
7
(771,339)
(732,455)
Net assets
791,468
902,328
Capital and reserves
Called up share capital
8
100
100
Other reserves
8,738,435
8,738,435
Profit and loss reserves
(7,947,067)
(7,836,207)
Total equity
791,468
902,328
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 25 May 2021
Mr R Coughlan
Director
Company Registration No. 06695582
CAPSTONE GLOBAL LIBRARY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020
- 2 -
Share capital
Capital contribution
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2019
100
8,738,435
(7,915,754)
822,781
Year ended 31 December 2019:
Profit for the year
-
-
79,547
79,547
Other comprehensive income:
Total comprehensive income for the year
79,547
79,547
Balance at 31 December 2019
100
8,738,435
(7,836,207)
902,328
Year ended 31 December 2020:
Loss for the year
-
-
(110,865)
(110,865)
Other comprehensive income:
Total comprehensive income for the year
(110,865)
(110,865)
Balance at 31 December 2020
100
8,738,435
(7,947,067)
791,468
CAPSTONE GLOBAL LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 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
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 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
The company is reliant on continued support from its parent company which has been shown by a letter of support received from Coughlan Companies LLC, a company registered in the United States of America.
true
After making enquiries and considering the uncertainties, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have also considered the implications of the ongoing global COVID-19 outbreak on the business and, whilst they accept that the ongoing situation may present a risk to the business, there is not considered to be an overall threat to the going concern status of the business. For these reasons, the directors continue 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 2020
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
1 - 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 comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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.
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
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
CAPSTONE GLOBAL LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 5 -
1.8
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.
1.9
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.
1.10
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.
1.11
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.
1.12
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.
1.13
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
Employees
The average monthly number of persons (including directors) employed by the company during the year was 1
4 (2019 - 16).
CAPSTONE GLOBAL LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 6 -
3
Intangible fixed assets
Pre-publication costs
£
Cost
At 1 January 2020
189,683
Disposals
(27,439)
At 31 December 2020
162,244
Amortisation and impairment
At 1 January 2020
189,683
Disposals
(27,439)
At 31 December 2020
162,244
Carrying amount
At 31 December 2020
At 31 December 2019
The above disposals represent pre-publication costs of titles which are no longer in print.
4
Tangible fixed assets
Equipment
£
Cost
At 1 January 2020 and 31 December 2020
116,456
Depreciation and impairment
At 1 January 2020
103,546
Depreciation charged in the year
10,176
At 31 December 2020
113,722
Carrying amount
At 31 December 2020
2,734
At 31 December 2019
12,907
CAPSTONE GLOBAL LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 7 -
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
432,787
582,575
Other debtors
76,647
97,158
509,434
679,733
6
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
120,446
139,658
Other creditors
290,401
376,404
410,847
516,062
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Parent undertaking
771,339
732,455
8
Called up share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
9
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.
The senior statutory auditor was Samantha Daniels.
The auditor was Shaw Gibbs (Audit) Limited.
CAPSTONE GLOBAL LIBRARY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
(Continued)
- 8 -
10
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
81,726
126,304
81,726
126,304