31/12/2020
2020-12-31
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No description of principal activities is disclosed
2020-01-01
Sage Accounts Production 2020 Update 1 - FRS102_2014
xbrli:pure
xbrli:shares
iso4217:GBP
07731156
2020-01-01
2020-12-31
07731156
2020-12-31
07731156
2019-01-01
2019-12-31
07731156
2019-12-31
07731156
core:FurnitureFittingsToolsEquipment
2020-01-01
2020-12-31
07731156
bus:Director1
2020-01-01
2020-12-31
07731156
core:FurnitureFittingsToolsEquipment
2020-12-31
07731156
core:WithinOneYear
2020-12-31
07731156
core:WithinOneYear
2019-12-31
07731156
core:AfterOneYear
2020-12-31
07731156
core:AfterOneYear
2019-12-31
07731156
core:ShareCapital
2020-12-31
07731156
core:ShareCapital
2019-12-31
07731156
core:SharePremium
2020-12-31
07731156
core:SharePremium
2019-12-31
07731156
core:RetainedEarningsAccumulatedLosses
2020-12-31
07731156
core:RetainedEarningsAccumulatedLosses
2019-12-31
07731156
bus:Director1
2019-12-31
07731156
bus:Director1
2020-12-31
07731156
bus:Director1
2018-12-31
07731156
bus:Director1
2019-12-31
07731156
bus:Director1
2019-01-01
2019-12-31
07731156
bus:SmallEntities
2020-01-01
2020-12-31
07731156
bus:AuditExemptWithAccountantsReport
2020-01-01
2020-12-31
07731156
bus:FullAccounts
2020-01-01
2020-12-31
07731156
bus:SmallCompaniesRegimeForAccounts
2020-01-01
2020-12-31
07731156
bus:PrivateLimitedCompanyLtd
2020-01-01
2020-12-31
07731156
core:WithinOneYear
2020-01-01
2020-12-31
07731156
core:AfterOneYear
2020-01-01
2020-12-31
07731156
1
2020-01-01
2020-12-31
Company registration number:
07731156
Torch Apparel Ltd
Unaudited filleted financial statements
31 December 2020
TORCH APPAREL LTD
Contents
Statement of financial position
Notes to the financial statements
TORCH APPAREL LTD
STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2020
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2020
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2019
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Note
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£
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£
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£
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£
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|
|
|
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|
|
Current assets
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|
|
|
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Stocks
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30,574
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21,909
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Debtors
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|
6
|
29,695
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|
|
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35,208
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|
|
Cash at bank and in hand
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70,015
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84,545
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_______
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_______
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130,284
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141,662
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Creditors: amounts falling due
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within one year
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7
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(
21,507)
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(
11,423)
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_______
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_______
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Net current assets
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108,777
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130,239
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_______
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_______
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Total assets less current liabilities
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108,777
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130,239
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Creditors: amounts falling due
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after more than one year
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8
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(
506,845)
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(
478,578)
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|
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_______
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_______
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Net liabilities
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(
398,068)
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(
348,339)
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_______
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_______
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Capital and reserves
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Called up share capital
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1,125
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|
1,125
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Share premium account
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|
9
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|
112,387
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|
|
|
112,387
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Profit and loss account
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|
9
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|
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(
511,580)
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|
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(
461,851)
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_______
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_______
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Shareholders deficit
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(
398,068)
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(
348,339)
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_______
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_______
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For the year ending 31 December 2020 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 their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
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 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 statement of income and retained earnings has not been delivered.
These financial statements were approved by the
board of directors
and authorised for issue on
19 July 2021
, and are signed on behalf of the board by:
Mr H R Roper
Director
Company registration number:
07731156
TORCH APPAREL LTD
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2020
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is C/O Hugh Symons Group Ltd, Alder Hills Industrial Park, 16 Alder Hills, Poole, Dorset, BH12 4AR.
Principal activity
The principal activity of the company is that of sales of bicycle helmets and apparel. It also carries out research and development of bicycle helmets and apparel.
2.
Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and 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 financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. The validity of this assumption depends on the continued support from the company's director. If the company were unable to continue in operational existence for the foreseeable future, adjustments will have to be made to reduce the balance sheet value of assets to their recoverable amounts, and to provide for further liabilities that might arise, and to reclassify fixed assets as current assets. The director believes that it is appropriate for the financial statemenst to be prepared on the going concern basis.
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.Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on despatch of the goods; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Exceptional items
Exceptional items are disclosed separately in the financial statements in order to provide further understanding of the financial performance of the entity. They are material items of income or expense that have been shown separately because of their nature or amount.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, 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 profit or loss.
Research and development
Research expenditure is written off in the year in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred.
Tangible assets
Tangible assets are initially recorded at cost, and are subsequently stated at cost less accumulated depreciation and impairment losses.
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:
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Fittings, fixtures and equipment
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-
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33.33 %
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straight line
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If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
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. 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 are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Financial instruments
A financial asset or a financial liability is recognised only when the company 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.
4.
Employee numbers
The average number of persons employed by the company during the year amounted to
1
(2019:
1
).
5.
Tangible assets
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Fixtures, fittings and equipment
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Total
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£
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£
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Cost
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At 1 January 2020 and 31 December 2020
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999
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999
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_______
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_______
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Depreciation
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At 1 January 2020 and 31 December 2020
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999
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999
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_______
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_______
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Carrying amount
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At 31 December 2020
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-
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-
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_______
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_______
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At 31 December 2019
|
-
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-
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_______
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_______
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6.
Debtors
|
|
|
2020
|
2019
|
|
|
|
£
|
£
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Trade debtors
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11,522
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33,771
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Other debtors
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18,173
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1,437
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|
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_______
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_______
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29,695
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35,208
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|
_______
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_______
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7.
Creditors: amounts falling due within one year
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2020
|
2019
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|
£
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£
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|
Bank loans and overdrafts
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|
3,733
|
-
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|
Trade creditors
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|
10,885
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5,090
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|
Other creditors
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|
6,889
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6,333
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|
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|
_______
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_______
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21,507
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11,423
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|
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|
_______
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_______
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The bank loan is repayable over 6 years at an interest rate of 2.5%. The first 12 months of the loan is interest and repayment free.
The bank loan is secured by a fixed and floating charge over the company's assets and undertakings.
8.
Creditors: amounts falling due after more than one year
|
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2020
|
2019
|
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|
£
|
£
|
|
Bank loans and overdrafts
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|
28,267
|
-
|
|
Other creditors
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|
478,578
|
478,578
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_______
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_______
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506,845
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478,578
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_______
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_______
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The bank loan is secured by a fixed and floating charge over the company's assets and undertakings.
Included within creditors: amounts falling due after more than one year is an amount of £ 9,067
(2019 £ - ) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
The bank loan is repayable over 6 years at an interest rate of 2.5%. The first 12 months of the loan is interest and repayment free.
9.
Reserves
Profit and loss account:This reserve records retained earnings and accumulated losses.
10.
Events after the end of the reporting period
Although there are no specific known factors which could have an impact on the company’s financial statements it should be noted that as at the end of the financial year there was instability relating to the global health emergency in respect of Coronavirus. Coronavirus initially affected China in the first few weeks of 2020. It has since spread to other countries and was declared an international public health emergency by the World Health Organisation at the end of January 2020. The UK introduced lockdown arrangements in March 2020 and subsequently in November 2020. Whilst we do not feel that this event and the lockdown which has subsequently followed triggers any adjustments to the financial statements either based upon the position at the year-end or due to events that have transpired since, it is worth noting that there is uncertainty in this area. The company has started the activity of reviewing the scenario and evaluating the management actions to mitigate the impact to the business. The Company has adopted initiatives to safeguard the health of its people and actions aimed at maintaining operational activity, whilst also adhering to the latest government guidance. The repercussions of any adjustments to the financial statements are currently not determinable in light of the volatility of the scenarios and the continuous evolution of the market, these will be reflected in the 2021 financial statements.
11.
Directors advances, credits and guarantees
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During the year the director entered into the following advances and credits with the company:
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Loans to / (from) director at 1 January 2020
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Loans to / (from) the director
|
Balance at 31 December 2020
|
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|
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£
|
£
|
£
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|
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|
|
Director
|
(
478,578)
|
-
|
(
478,578)
|
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_______
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_______
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_______
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Loans to / (from) director at 1 January 2019
|
Loans to / (from) the director
|
Balance at 31 December 2019
|
|
|
|
|
|
£
|
£
|
£
|
|
|
|
|
Director
|
(
479,000)
|
422
|
(
478,578)
|
|
|
|
|
|
_______
|
_______
|
_______
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