Company registration number:
for the Year Ended
Red One Ltd
(Registration number: 07379630)
Balance Sheet as at 30 March 2022
Note |
2022 |
2021 |
|
Fixed assets |
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Tangible assets |
|
|
|
Current assets |
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Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Net liabilities excluding pension asset/(liability) |
(125,743) |
(509,279) |
|
Net pension liability |
(119,000) |
(134,000) |
|
Net liabilities |
( |
( |
|
Capital and reserves |
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Called up share capital |
|
|
|
Profit and loss account |
( |
( |
|
Total equity |
( |
( |
These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account and directors’ report has been taken.
Approved and authorised by the
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Red One Ltd
Notes to the Financial Statements
for the Year Ended 30 March 2022
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
These financial statements are presented in Sterling (£).
Going concern
The company has net liabilities at the year end of £244,743 (2021: £643,279) which includes a balance owed to its parent company of £756,234 (2021: £794,818).
The Directors continue to improve the company's financial stability and have effected a number of measures including securing long term, profitable, contracts during the year.
The Parent company has confirmed its intention to continue to support the company’s ongoing turnaround and that it will not take any steps for at least 12 months following the signing of these accounts to recall the payment of its outstanding invoices in preference to third party creditors or until the company has sufficient resources to repay.
Accordingly, the Directors consider it appropriate to prepare the accounts on the going concern basis.
Turnover recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
Red One Ltd
Notes to the Financial Statements
for the Year Ended 30 March 2022
Tangible assets
Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation of tangible assets
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
20% straight line |
Office equipment |
20% straight line |
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Website costs |
20% straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Other creditors are measured individually at fair value net of transaction costs and subsequently at amortised cost using the effective interest method.
Red One Ltd
Notes to the Financial Statements
for the Year Ended 30 March 2022
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
The company operates a defined contribution plan for some of its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.
The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Defined benefit pension obligation
The company operates a defined benefit plan for qualifying employees. A defined benefit plan is a pension plan under which the company pays contributions based on the salary and length of service of the employee. There is a payment obligation to pay any shortfall in the scheme.
The remeasurement in other comprehensive income are recognised as an expense in the profit or loss account.The service cost of the plan are recognised as a liability in the balance sheet.The liability for the contributions payable is recognised as a non-current liability in the balance sheet.
Staff numbers |
The average number of persons employed by the company (including directors) during the year was
Red One Ltd
Notes to the Financial Statements
for the Year Ended 30 March 2022
Tangible assets |
Furniture, fittings and equipment |
Plant and machinery |
Total |
|
Cost or valuation |
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At 31 March 2021 |
|
- |
|
Additions |
|
|
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Disposals |
( |
- |
( |
At 30 March 2022 |
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|
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Depreciation |
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At 31 March 2021 |
|
- |
|
Charge for the year |
|
|
|
Eliminated on disposal |
( |
- |
( |
At 30 March 2022 |
|
|
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Carrying amount |
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At 30 March 2022 |
|
|
|
At 30 March 2021 |
|
- |
|
Debtors |
2022 |
2021 |
|
Trade debtors |
|
|
Other debtors |
|
|
Total current trade and other debtors |
|
|
Creditors |
2022 |
2021 |
|
Trade creditors |
|
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Taxation and social security |
|
|
Other creditors |
|
|
|
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Red One Ltd
Notes to the Financial Statements
for the Year Ended 30 March 2022
Reserves |
The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:
Retained earnings |
Total |
|
Remeasurement gain/(loss) on defined benefit pension schemes |
|
|
|
The changes to each component of equity resulting from items of other comprehensive income for the prior year were as follows:
Retained earnings |
Total |
|
Remeasurement gain/(loss) on defined benefit pension schemes |
( |
( |
|
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
Relationship between entity and parents |
The parent of the largest group in which these financial statements are consolidated is
The address of Devon and Somerset Fire Rescue Authority is:
The Knowle
Clyst St George
Exeter
EX3 0NW
Audit Report |
Red One Ltd
Notes to the Financial Statements
for the Year Ended 30 March 2022
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling
£
Defined benefit pension schemes
This is a defined benefit plan provided to the employees of Red One Ltd by Devon County Council and which is part of the Local Government Pension Scheme (LGPS). Contributions are set every three years as a result of the actuarial valaution of the Fund required by the Regulations.
The most recent comprehensive actuarial valuation is dated 31 March 2022. The next actuarial valuation of the Fund will be carried out as at 31 March 2023 . There are no minimum funding requirements in the LGPS but the contributions are generally set to target a funding level of 100% using actuarial valuation assumptions. The minimum employer contributions due for the periods beginning 1 April 2021 and 1 April 2022 has been set at 17.0% of payroll.
As many unrelated employers participate in the LGPS, there is an orphan liability risk where employers leave the Fund but with insufficient assets to cover their pension obligations so that the difference may fall on the remaining employers.
Reconciliation of scheme assets and liabilities to assets and liabilities recognised
The amounts recognised in the statement of financial position are as follows:
2022 |
2021 |
|
Fair value of scheme assets |
|
|
Present value of defined benefit obligation |
( |
( |
Defined benefit pension scheme deficit |
( |
( |
Red One Ltd
Notes to the Financial Statements
for the Year Ended 30 March 2022
Defined benefit obligation
Changes in the defined benefit obligation are as follows:
2022 |
|
Present value at start of year |
|
Service cost |
|
Interest cost |
|
Actuarial gains and losses |
( |
Contributions by scheme participants |
|
Present value at end of year |
|
Fair value of scheme assets
Changes in the fair value of scheme assets are as follows:
2022 |
|
Fair value at start of year |
|
Interest income |
|
Return on plan assets, excluding amounts included in interest income/(expense) |
|
Employer contributions |
|
Contributions by scheme participants |
|
Fair value at end of year |
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Analysis of assets
The major categories of scheme assets are as follows:
2022 |
2021 |
|
Cash and cash equivalents |
|
|
Equity instruments |
|
|
Property and infrastructure |
|
|
Investment funds |
15,000 |
24,000 |
|
|
The pension scheme has not invested in any of the company's own financial instruments or in properties or other assets used by the company.