Company Registration No. 07841064 (England and Wales)
MOBALPA UK LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
PAGES FOR FILING WITH REGISTRAR
MOBALPA UK LIMITED
Contents
Page
Accountants' report
1
Statement of financial position
2
Notes to the financial statements
3 - 8
MOBALPA UK LIMITED
REPORT TO THE DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY ACCOUNTS OF MOBALPA UK LIMITED
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Mobalpa UK Limited for the year ended 31 December 2020 which comprise, the statement of financial position and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the I
CAS
we are subject to its ethical and other professional requirements which are detailed at https://www.icas.com/professional-resources/ethics/support-and-guidance
.
This report is made solely to the Board of Directors of Mobalpa UK Limited, as a body, in accordance with the terms of our engagement letter dated 29 August 2018. Our work has been undertaken solely to prepare for your approval the financial statements of Mobalpa UK Limited and state those matters that we have agreed to state to the Board of Directors of Mobalpa UK Limited, as a body, in this report in accordance with the requirements of the
ICAS
as detailed at https://www.icas.com/professional-resources/practice/support-and-guidance/framework-for-the-preparation-of-accounts-revised-january-2017. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Mobalpa UK Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Mobalpa UK Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets,
liabilities, financial position and profit
of Mobalpa UK Limited. You consider that Mobalpa UK Limited is exempt from the statutory audit
requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Mobalpa UK Limited. For this reason, we have not verified the accuracy or completeness of the
accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Condie & Co Limited
8 March 2021
Chartered Accountants
10 Abbey Park Place
Dunfermline
Fife
KY12 7NZ
MOBALPA UK LIMITED
Statement Of Financial Position
As At 31 December 2020
- 2 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
4
127,812
147,732
Current assets
Stocks
31,743
31,743
Debtors
5
40,569
25,882
Cash at bank and in hand
77,814
7,105
150,126
64,730
Creditors: amounts falling due within one year
6
(325,453)
(358,151)
Net current liabilities
(175,327)
(293,421)
Total assets less current liabilities
(47,515)
(145,689)
Creditors: amounts falling due after more than one year
7
(43,788)
-
Net liabilities
(91,303)
(145,689)
Capital and reserves
Called up share capital
9
100,000
100,000
Profit and loss reserves
(191,303)
(245,689)
Total equity
(91,303)
(145,689)
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
For the financial year ended 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies
'
regime.
The financial statements were approved by the board of directors and authorised for issue on 8 March 2021 and are signed on its behalf by:
Mrs K E Evans
Director
Company Registration No. 07841064
MOBALPA UK LIMITED
Notes To The Financial Statements
For The Year Ended 31 December 2020
- 3 -
1
Accounting policies
Company information
Mobalpa UK Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
280 Winwick Road, Unit 1, Warrington, WA2 8HJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies' regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention
. T
he principal accounting policies adopted are set out below.
1.2
Going concern
At 31 December 2020 the company had net liabilities of
true
£
175,327
and a net deficit of £
91,303.
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have revised the operational activities of the company as a result of the Coronavirus (Covid-19) outbreak, implementing safeguards where necessary, and continue to monitor performance and operations on an ongoing basis. The directors remain confident that the company can continue to operate for the next 12 months, given the balance sheet position.
On this basis, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
MOBALPA UK LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2020
1
Accounting policies
(Continued)
- 4 -
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
10% straight line
Fixtures and fittings
10% straight line
Computer equipment
33.33% straight line
Motor vehicles
20% 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
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
MOBALPA UK LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2020
1
Accounting policies
(Continued)
- 5 -
1.7
Cash at bank and in hand
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
MOBALPA UK LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2020
1
Accounting policies
(Continued)
- 6 -
1.12
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
5
5
4
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2020
106,461
34,693
8,273
12,495
161,922
Disposals
-
(610)
-
-
(610)
At 31 December 2020
106,461
34,083
8,273
12,495
161,312
Depreciation and impairment
At 1 January 2020
6,824
2,464
3,236
1,666
14,190
Depreciation charged in the year
10,646
3,408
2,757
2,499
19,310
At 31 December 2020
17,470
5,872
5,993
4,165
33,500
Carrying amount
At 31 December 2020
88,991
28,211
2,280
8,330
127,812
At 31 December 2019
99,637
32,229
5,037
10,829
147,732
MOBALPA UK LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2020
- 7 -
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
10,578
-
Other debtors
250
250
Prepayments and accrued income
29,741
25,632
40,569
25,882
6
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans
6,212
-
Trade creditors
8,201
14,062
Amounts owed to group undertakings
200,033
218,780
Taxation and social security
20,267
16,923
Other creditors
2,330
2,901
Accruals and deferred income
88,410
105,485
325,453
358,151
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
43,788
-
8
Deferred taxation
At
31 December 20
20 the company had tax losses amounting to £368,189 which are available to utilise against future trading profits. These tax losses have not been recognised as a deferred tax asset on the grounds that there is insufficient evidence that the losses will be recovered in the foreseeable future.
9
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
1,000 Ordinary shares of £100 each
100,000
100,000
10
Financial commitments, guarantees and contingent liabilities
The company has financial commitments totalling £
36,675
(2019: £nil) due in the next financial year.
MOBALPA UK LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2020
- 8 -
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
61,875
111,375
12
Related party transactions
The company has taken advantage of Section 1AC35 of FRS 102 whereby only material transactions which are not under the normal market conditions need to be disclosed.
The company has taken advantage of Section 33.1A of FRS102 whereby only transactions which are not with wholly owned members of a group need to be disclosed.
13
Parent company
The company is under the control of
Design Your Lifestyle Limited,
registered in
Scotland
, and its registered office is 2
Beacon Croft, Bridge of Allan, Stirling, FK9 4RX.
14
Events after the Reporting Date
At the date on which the financial statements were approved, the overall financial implications arising from the Coronavirus (Covid-19) pandemic, which has affected the UK from February 2020, remain uncertain. The directors have reviewed the company's operational activities as a result of the Covid-19 crisis and remain confident for the future. It is anticipated that the company will continue to trade well in the foreseeable future.
|
The directors are of the opinion that the Covid-19 outbreak is a non-adjusting Post Balance Sheet event and that the company remains a going concern.
|