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Registered number: |
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Balance Sheet | |||||||
as at |
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Notes | 2020 | 2019 | |||||
£ | £ | ||||||
Fixed assets | |||||||
Intangible assets | 4 |
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Tangible assets | 5 |
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Current assets | |||||||
Debtors | 6 |
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Cash at bank and in hand |
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Creditors: amounts falling due within one year | 7 | ( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: amounts falling due after more than one year | 8 | ( |
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Net liabilities | ( |
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Capital and reserves | |||||||
Called up share capital |
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Share premium |
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Other reserve | 10 | - |
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Profit and loss account | ( |
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Shareholders' funds | ( |
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H McCormack | |||||||
Director | |||||||
Approved by the board on |
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Notes to the Accounts | ||||||||
for the year ended |
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1 | Accounting policies | |||||||
Basis of preparation | ||||||||
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Going cocern | ||||||||
During the year ended 31 August 2020, the company made a profit for the financial year of £23,514 (2019: loss of £435,898). At 31 August 2020, the company had net liabilities of £1,988,644 (2019:£2,012,158), which included a long term liability of £2,045,799 (2019: £2,152,604) in respect of amounts due to principal shareholders. During the year the shareholders agreed to retrospectively reduce the interest rate payable on their loans from 10% to 5%, and this has given rise to a credit to interest payable of £151,806 (2019: interest payable £167,202). If the interest rate payable had remained at 10%, the interest charge for the year would have been £171,450. In addition, since March 2020, the UK has experienced a pandemic of coronavirus. To date, the directors are of the opinion that this has not had a significant adverse effect on the company's trading. The position is kept under regular review by the directors who remain committed to the business The directors have undertaken to provide such financial support as may be required to enable the company to meet its liabilities as they fall due for a period of at least 12 months from the date of signing the accounts. Accordingly, the accounts have been prepared on a going concern basis. The directors are satisfied that the going concern basis is appropriate for the preparation of these accounts as they have obtained confirmation that the principal shareholders will continue to support the company for a period of at least 12 months from the date of approval of the accounts and that no call will be made for the repayment of these debts to the extent that this would prejudice the ability of the company to meet its liabilities as they fall due. |
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Turnover | ||||||||
Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: - the amount of revenue can be measured reliably; - it is probable that the company will receive the consideration due under the contract; - the stage of completion of the contract at the end of the reporting period can be measured reliably; and - the costs incurred and the costs to complete the contract can be measured reliably. |
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Intangible fixed assets | ||||||||
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Tangible fixed assets | ||||||||
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Office equipment | over 4 years | |||||||
Debtors | ||||||||
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Financial instruments | ||||||||
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors and loans from banks and other third parties. | ||||||||
Creditors | ||||||||
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Foreign currency translation | ||||||||
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2 | Employees | 2020 | 2019 | |||||
Number | Number | |||||||
Average number of persons employed by the company including directors |
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3 | Taxation | |||||||
The prior year corporation tax credit of £15,228 represents group relief surrendered to the company's parent, Emerald Village Holdings Limited. Corporation tax losses of approximately £2,573,000 (2019: £2,599,000) are being carried forward for relief against future trading profits. The company has not recognised a deferred tax asset in respect of these tax losses due to the current uncertainty as to their utilisation. | ||||||||
4 | Intangible fixed assets | £ | ||||||
Cost | ||||||||
At 1 September 2019 |
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At 31 August 2020 |
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Amortisation | ||||||||
At 1 September 2019 |
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Provided during the year |
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At 31 August 2020 |
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Net book value | ||||||||
At 31 August 2020 |
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At 31 August 2019 |
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5 | Tangible fixed assets | |||||||
Office equipment | ||||||||
£ | ||||||||
Cost | ||||||||
At 1 September 2019 |
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Additions |
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Disposals | ( |
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At 31 August 2020 |
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Depreciation | ||||||||
At 1 September 2019 |
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Charge for the year |
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On disposals | ( |
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At 31 August 2020 |
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Net book value | ||||||||
At 31 August 2020 |
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At 31 August 2019 |
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6 | Debtors | 2020 | 2019 | |||||
£ | £ | |||||||
Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
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7 | Creditors: amounts falling due within one year | 2020 | 2019 | |||||
£ | £ | |||||||
Trade creditors |
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Other creditors |
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8 | Creditors: amounts falling due after one year | 2020 | 2019 | |||||
£ | £ | |||||||
Other loans |
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Amounts owed to group undertakings |
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9 | Share capital | 2020 | 2019 | |||||
£ | £ | |||||||
Allotted, called up and fully paid | ||||||||
3,749,800 (2019: 3,524,550) Ordinary shares of £0.0001 each | 375 | 352 | ||||||
1 Ordinary share of £1 | 1 | 1 | ||||||
376 | 353 | |||||||
On 10 February 2020, the company issued 225,250 Ordinary shares of £0.0001 each for a consideration of £1 per share as a result of a cash call in accordance with the Shareholders' agreement. The share premium on the issue of the shares totalled £225,227. The funds raised are to provide additional working capital for the development of the company's trade. | ||||||||
10 | Other reserve | 2020 | 2019 | |||||
£ | £ | |||||||
At 1 September 2019 |
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Subscriber monies received | - |
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Shares issued | ( |
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At 31 August 2020 | - |
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11 | Related party transactions | |||||||
At the balance sheet date the total aggregate loans from shareholders amounted to £2,045,799 (2019: £2,152,604) including interest. The balances attract a non-compounding interest rate which, during the year, was retrospectively reduced from 10% to 5%. This equates to cumulative interest payable outstanding of £322,500 at 31 August 2020 (2019: £474,305 at a non-compounding interest rate of 10%). Included in the total aggregated loans from shareholders is a loan outstanding from Emerald Village Holdings Limited, the parent company of £1,019,908 (2019: £1,041,885) including interest. This includes accrued interest at a non-compounding rate of 5% of £151,909 (2019: at a non-compounding interest rate of 10% £218,886). During the year, the company paid management charges to its parent company, Emerald Village Holdings Limited, of £52,732 (2019: £32,712) for the provison of staff. |
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12 | Controlling party | |||||||
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13 | Other information | |||||||
Emerald Life Limited is a private company limited by shares and incorporated in England. Its registered office is: | ||||||||
286 Queensbridge Road | ||||||||
London | ||||||||
E8 3NH |