Company No:
Contents
Note | 2021 | 2020 | ||
£ | £ | |||
Fixed assets | ||||
Tangible assets | 3 |
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8,265 | 12,007 | |||
Current assets | ||||
Debtors | 4 |
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Cash at bank and in hand |
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1,102,750 | 662,548 | |||
Creditors | ||||
Amounts falling due within one year | 5 | (
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Net current liabilities | (517,544) | (590,488) | ||
Total assets less current liabilities | (509,279) | (578,481) | ||
Creditors | ||||
Amounts falling due after more than one year | 6 | (
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Net liabilities | (
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Capital and reserves | ||||
Called-up share capital | 7 |
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Profit and loss account | (
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Total shareholder's deficit | (
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Directors' responsibilities:
The financial statements of Red One Ltd (registered number:
Sian George
Director |
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Red One Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Devon Transport Centre Red One Offices, Westpoint, Clyst St. Mary, Exeter, EX5 1DJ.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.
The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors note that the business has net liabilities of £643,279. The Company is supported through loans from the Parent Company. The directors have received assurances that the loan facilities will continue to be available for at least 12 months from the date of signing these financial statements and the Parent Company will continue to support the Company. After making enquiries, the directors believe that any foreseeable debts can be met for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.
Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.
Defined benefit schemes
For defined benefit schemes the amounts charged to operating profit are the costs arising from employee services rendered during the period and the cost of plan introductions, benefit changes, settlements and curtailments. They are included as part of staff costs. The net interest cost on the net defined benefit liability is charged to the Profit and Loss Account and included within finance costs. Remeasurement comprising actuarial gains and losses and the return on scheme assets (excluding amounts included in net interest on the net defined benefit liability) are recognised immediately in the Statement of Comprehensive Income.
Defined benefit schemes are funded, with the assets of the scheme held separately from those of the Company, in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method. Actuarial valuations are obtained at least triennially and are updated at each Balance Sheet date.
The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial valuations.
The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.
The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
Fixtures and fittings |
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years | Straight line | |
Computer equipment |
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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.
Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
2021 | 2020 | ||
Number | Number | ||
Monthly average number of persons employed by the Company during the year, including directors |
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Fixtures and fittings | Computer equipment | Total | |||
£ | £ | £ | |||
Cost | |||||
At 01 April 2020 |
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Additions |
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Disposals | (
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At 31 March 2021 |
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Accumulated depreciation | |||||
At 01 April 2020 |
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Charge for the financial year |
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Disposals | (
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At 31 March 2021 |
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Net book value | |||||
At 31 March 2021 |
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At 31 March 2020 |
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2021 | 2020 | ||
£ | £ | ||
Trade debtors |
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Other debtors |
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2021 | 2020 | ||
£ | £ | ||
Trade creditors |
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Other creditors |
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Other taxation and social security |
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2021 | 2020 | ||
£ | £ | ||
Other creditors |
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2021 | 2020 | ||
£ | £ | ||
Allotted, called-up and fully-paid | |||
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Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
2021 | 2020 | ||
£ | £ | ||
- within one year |
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- between one and five years |
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Reconciliation of scheme assets and liabilities to assets and liabilities recognised
2021 | 2020 | ||
£ | £ | ||
Fair value of scheme assets | 114,000 | 86,000 | |
Present value of defined benefit obligation | (248,000) | (154,000) | |
(134,000) | (68,000) |
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 valuation of the Fund required by the Regulations.
The most recent comprehensive actuarial valuation is dated 31 March 2021. The next actuarial valuation will be carried out as at 31 March 2022 and will set contributions for the period 1 April 2023 to 31 March 2026. There are no minimum funding requirements in the LGPS by the contributions are generally set to target a funding level of 100% using actuarial valuation assumptions. The minimum employer contributions are due for the periods beginning 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.
Defined benefit obligation
2021 | |
£ | |
Present value at start of year | 154,000 |
Service cost | 8,000 |
Interest cost | 4,000 |
Benefits paid | 0 |
Contributions by scheme participants | 2,000 |
Change in financial assumptions | 84,000 |
Change in demographic assumptions | (2,000) |
Experience loss/(gain) on defined benefit obligation | (2,000) |
248,000 |
Fair value of scheme assets
2021 | |
£ | |
Fair value at start of year | 86,000 |
Interest income | 2,000 |
Return on plan assets, excluding amounts included in interest income/(expense) | 20,000 |
Employer contributions | 4,000 |
Contributions by scheme participants | 2,000 |
Benefits paid | 0 |
114,000 |
Analysis of assets
2021 | |
£ | |
Cash and cash equivalents | 4,000 |
Equity instruments | 72,000 |
Property and infrastructure | 14,000 |
Investment funds | 24,000 |
114,000 |