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2021-06-01
Sage Accounts Production Advanced 2021 - FRS102_2021
xbrli:pure
xbrli:shares
iso4217:GBP
07639288
2021-06-01
2022-05-31
07639288
2022-05-31
07639288
2021-05-31
07639288
2020-06-01
2021-05-31
07639288
2021-05-31
07639288
bus:Director2
2021-06-01
2022-05-31
07639288
core:FurnitureFittings
2021-05-31
07639288
core:FurnitureFittings
2022-05-31
07639288
core:FurnitureFittings
2021-06-01
2022-05-31
07639288
core:WithinOneYear
2022-05-31
07639288
core:WithinOneYear
2021-05-31
07639288
core:ShareCapital
2022-05-31
07639288
core:ShareCapital
2021-05-31
07639288
core:RetainedEarningsAccumulatedLosses
2022-05-31
07639288
core:RetainedEarningsAccumulatedLosses
2021-05-31
07639288
core:FurnitureFittings
2021-05-31
07639288
bus:SmallEntities
2021-06-01
2022-05-31
07639288
bus:AuditExemptWithAccountantsReport
2021-06-01
2022-05-31
07639288
bus:FullAccounts
2021-06-01
2022-05-31
07639288
bus:SmallCompaniesRegimeForAccounts
2021-06-01
2022-05-31
07639288
bus:PrivateLimitedCompanyLtd
2021-06-01
2022-05-31
07639288
core:ComputerEquipment
2021-05-31
07639288
core:ComputerEquipment
2021-06-01
2022-05-31
07639288
core:ComputerEquipment
2022-05-31
07639288
core:EntitiesControlledByKeyManagementPersonnel
2021-06-01
2022-05-31
COMPANY REGISTRATION NUMBER:
07639288
Filleted unaudited financial statements |
|
year ended 31st May 2022
Statement of financial position |
1 |
|
|
Notes to the financial statements |
2 to 5 |
|
|
Statement of financial position |
|
31 May 2022
Fixed assets
Tangible assets |
5 |
|
83,217 |
41,408 |
|
|
|
|
|
Current assets
Debtors |
6 |
3,693,828 |
|
4,357,033 |
Cash at bank and in hand |
197,416 |
|
665,992 |
|
----------- |
|
----------- |
|
3,891,244 |
|
5,023,025 |
|
|
|
|
|
Creditors: amounts falling due within one year |
7 |
(
2,899,366) |
|
(
3,497,841) |
|
----------- |
|
----------- |
Net current assets |
|
991,878 |
1,525,184 |
|
|
----------- |
----------- |
Total assets less current liabilities |
|
1,075,095 |
1,566,592 |
|
|
----------- |
----------- |
Net assets |
|
1,075,095 |
1,566,592 |
|
|
----------- |
----------- |
|
|
|
|
|
Capital and reserves
Called up share capital |
|
14 |
14 |
Profit and loss account |
|
1,075,081 |
1,566,578 |
|
|
----------- |
----------- |
Shareholders funds |
|
1,075,095 |
1,566,592 |
|
|
----------- |
----------- |
|
|
|
|
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the income statement has not been delivered.
For the year ending 31st May 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
-
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
;
-
The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements
.
These financial statements were approved by the
board of directors
and authorised for issue on
19 September 2023
, and are signed on behalf of the board by:
Company registration number:
07639288
Notes to the financial statements |
|
year ended 31st May 2022
1.
General information
The principal activity of the company is the provision of short term investment loans.
The company is a private limited company, which is incorporated in England and Wales (no. 07639288
). The address of the registered office is 7 Limewood way, Leeds, West Yorkshire, LS14 1AB.
2.
Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3.
Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The Directors have considered the going concern assumption given the current trading of the Company and the funding considerations of the Company and have formed the conclusion that it is appropriate to consider that the Company will continue to operate in the foreseeable future. The current strength of the balance sheet will enable the Company to meet its financial obligations as they fall due, aided too by a significant planned reduction in operating costs as well as the clearing of debt to our primary funding partner which will reduce negative operating cash flows. Discussions with potential corporate funding partners remain ongoing and therefore the Company remains positive that the decline in lending volume since 31 May 2022 on account of Covid, the cost of living crisis and the winding down of our aforementioned funding partner can be reversed. The directors are therefore satisfied that the Company can continue to operate through until the end of the Company's next financial year.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: The provision for irrecoverable loans represents 100% of all loans where no cash collection is perceived likely, and a floating percentage based on recent portfolio performance applied to the remaining outstanding loans.
Turnover
The accounting policy on turnover recognition was updated in the year. The turnover in the profit and loss account represents interest and charges due on loans provided. The amount also includes the re-sale value of bad debts. The change in accounting policy has resulted in additional income of £311k recognised this year in comparison to the old recognition policy. In the prior year, the turnover in the profit and loss accounts represents interest and charges receivable on loans sold in the accounting period. Interest and charges receivable includes all amounts received during the financial year together with interest and charges received in the 6 months following the year end on all loans sold at the year end date. The comparatives have not been restated as it is not practicable to do so.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Tangible assets
All fixed assets are initially recorded at cost.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|
Computer equipment |
- |
2 years straight line |
|
Computer software |
- |
2 years straight line |
|
|
|
|
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.
Financial assets, including loan sales, are measured at cost and reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of of similar credit risk characteristics. Recoverability of loan sales are assessed on actual repayments post year end and historic data trends on loan recoverability.
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4.
Employee numbers
The average number of persons employed by the company during the year amounted to
38
(2021:
35
).
5.
Tangible assets
|
Fixtures and fittings |
Computers and Software |
Total |
|
£ |
£ |
£ |
|
|
|
|
Cost |
|
|
|
At 1st June 2021 |
3,424 |
242,119 |
245,543 |
Additions |
3,769 |
83,998 |
87,767 |
|
------ |
--------- |
--------- |
At 31st May 2022 |
7,193 |
326,117 |
333,310 |
|
------ |
--------- |
--------- |
Depreciation |
|
|
|
At 1st June 2021 |
944 |
203,191 |
204,135 |
Charge for the year |
3,227 |
42,731 |
45,958 |
|
------ |
--------- |
--------- |
At 31st May 2022 |
4,171 |
245,922 |
250,093 |
|
------ |
--------- |
--------- |
Carrying amount |
|
|
|
At 31st May 2022 |
3,022 |
80,195 |
83,217 |
|
------ |
--------- |
--------- |
At 31st May 2021 |
2,480 |
38,928 |
41,408 |
|
------ |
--------- |
--------- |
|
|
|
|
6.
Debtors
Trade debtors |
3,616,368 |
4,268,511 |
Other debtors |
77,460 |
88,522 |
|
----------- |
----------- |
|
3,693,828 |
4,357,033 |
|
----------- |
----------- |
|
|
|
7.
Creditors:
amounts falling due within one year
Bank loans and overdrafts |
24 |
– |
Trade creditors |
287,911 |
300,099 |
Corporation tax |
869 |
280,292 |
Social security and other taxes |
80,263 |
13,842 |
Net wages & pension |
(
1,274) |
68 |
Other creditors |
2,531,573 |
2,903,540 |
|
----------- |
----------- |
|
2,899,366 |
3,497,841 |
|
----------- |
----------- |
|
|
|
8.
Related party transactions
Management charges totalling £nil (2020 - £105,000) were paid to companies under common control in the year.