Company Registration No. 08178576 (England and Wales)
Folk2Folk Limited
Annual report and financial statements
for the year ended 30 January 2020
Folk2Folk Limited
Company information
Directors
Louis Mathers
Timothy Sawyer
Roy Warren
(Appointed 28 August 2019)
Megan McCracken
(Appointed 21 October 2019)
Alexander Daly
(Appointed 27 September 2019)
Justin Abbott Chalew
(Appointed 3 October 2019)
Graham Dingle
(Appointed 30 July 2019)
Company number
08178576
Registered office
Number One Business Centre
Western Road
Launceston
Cornwall
PL15 7FJ
Independent auditor
Saffery Champness LLP
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Folk2Folk Limited
Contents
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Income statement
7
Statement of financial position
8
Notes to the financial statements
10 - 19
Folk2Folk Limited
Strategic report
For the year ended 30 January 2020
Page 1
The directors present the strategic report for the year ended 30 January 2020.
Fair review of the business
2019 has truly been a year of progress for FOLK2FOLK. Despite challenges for the peer-to-peer (P2P) market we bolstered our industry position with some key achievements during the year:
- Firstly, we surpassed £300m in total cumulative lending;
- Secondly, we processed and dispersed our largest single dealto date; and
- Thirdly, Cheltenham Borough Council became the first Local Authority investor to register with our lending platform.
Aside from these business landmarks, we made great improvement in our financial performance. Through a series of stringent cost cutting exercises, we closed 2019/20 financial year with £198k profit, a significant improvement from the £535k loss in 2019.
Principal risks and uncertainties
We are proud of our accomplishments so far but watchful of the challenges ahead. We expect the economic landscape in 2020 to be extremely challenging in the COVID-19 environment. Whilst the number of failure-to-pay cases in the FOLK2FOLK loan book has risen from a year ago, we are still well below industry average. We believe our pro-active portfolio management can set us apart from our competitors.
We believe FOLK2FOLK is in a good position to weather the current turbulence and has a bright future within the maturing P2P sector industry. However, to sustain growth for the long term, our priorities in 2020 will be laying the groundwork. Pre-COVID-19 we aimed to generate £1.1m profit in the next financial year and reward dividends to our shareholders by the end of 2022. This will be extremely challenging in the current economic climate as we continue to reduce cost to maintain a positive cashflow.
Future developments
In order to achieve our goals, we are setting out our key strategies into three key pillars:
-
Enhancing technology by revamping the current systems;
-
Servicing Borrowers via expansion into institutional funding; and
-
Empowering our own folks by stimulating a proactive working environment.
We are a forward-thinking company and believe we are robust enough to come through the current challenges and our 2020 strategies and goals will determine the success of FOLK2FOLK for the years ahead.
Louis Mathers
Director
29 April 2020
Folk2Folk Limited
Directors' report
For the year ended 30 January 2020
Page 2
The directors present their annual report and financial statements for the year ended 30 January 2020.
Principal activities
The principal activity of the company continued to be that of a peer to peer lender.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Louis Mathers
Robert Parnall
(Resigned 27 September 2019)
Timothy Sawyer
Giles Cross
(Resigned 3 May 2019)
Roy Warren
(Appointed 28 August 2019)
Megan McCracken
(Appointed 21 October 2019)
Alexander Daly
(Appointed 27 September 2019)
Justin Abbott Chalew
(Appointed 3 October 2019)
Graham Dingle
(Appointed 30 July 2019)
Auditor
Saffery Champness LLP have expressed their willingness to continue in office.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Folk2Folk Limited
Directors' report (continued)
For the year ended 30 January 2020
Page 3
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Louis Mathers
Director
29 April 2020
Folk2Folk Limited
Independent auditor's report
To the members of Folk2Folk Limited
Page 4
Opinion
We have audited the financial statements of Folk2Folk Limited (the 'company') for the year ended 30 January 2020 which comprise the income statement, the statement of financial position and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 30 January 2020 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
Folk2Folk Limited
Independent auditor's report (continued)
To the members of Folk2Folk Limited
Page 5
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the
financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and take advantage of the small companies exemption from the requirement to prepare a strategic report.
Folk2Folk Limited
Independent auditor's report (continued)
To the members of Folk2Folk Limited
Page 6
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Neil Davies (Senior Statutory Auditor)
for and on behalf of Saffery Champness LLP
29 April 2020
Chartered Accountants
Statutory Auditors
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Folk2Folk Limited
Income statement
For the year ended 30 January 2020
Page 7
Year
Period
ended
ended
30 January
30 January
2020
2019
£
£
Turnover
3,242,806
3,009,470
Cost of sales
(232,354)
(117,615)
Gross profit
3,010,452
2,891,855
Administrative expenses
(2,822,022)
(3,436,300)
Profit/(loss) before taxation
188,430
(544,445)
Tax on profit/(loss)
9,613
9,289
Profit/(loss) for the financial year
198,043
(535,156)
Folk2Folk Limited
Statement of financial position
As at 30 January 2020
30 January 2020
Page 8
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
5
41,733
128,380
Tangible assets
6
5,545
44,546
47,278
172,926
Current assets
Debtors
7
637,374
576,852
Cash at bank and in hand
445,668
71,188
1,083,042
648,040
Creditors: amounts falling due within one year
8
(227,088)
(363,543)
Net current assets
855,954
284,497
Total assets less current liabilities
903,232
457,423
Provisions for liabilities
(1,746)
(11,359)
Net assets
901,486
446,064
Capital and reserves
Called up share capital
10
21,945
21,195
Share premium account
4,070,672
3,823,472
Share option reserve
42,754
33,325
Profit and loss reserves
(3,233,885)
(3,431,928)
Total equity
901,486
446,064
These financial statements have been prepared 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 24 April 2020 and are signed on its behalf by:
Louis Mathers
Director
Company Registration No. 08178576
Folk2Folk Limited
Statement of changes in equity
For the year ended 30 January 2020
Page 9
Share capital
Share premium account
Share option reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 February 2018
19,235
3,177,456
25,483
(2,896,772)
325,402
Period ended 30 January 2019:
Loss and total comprehensive income for the period
-
-
-
(535,156)
(535,156)
Issue of share capital
10
-
646,016
-
-
646,016
Issue of share capital
10
1,960
-
-
-
1,960
Equity settled share based payment movement
-
-
7,842
-
7,842
Balance at 30 January 2019
21,195
3,823,472
33,325
(3,431,928)
446,064
Period ended 30 January 2020:
Profit and total comprehensive income for the period
-
-
-
198,043
198,043
Issue of share capital
10
-
247,200
-
-
247,200
Issue of share capital
10
750
-
-
-
750
Equity settled share based payment movement
-
-
9,429
-
9,429
Balance at 30 January 2020
21,945
4,070,672
42,754
(3,233,885)
901,486
Folk2Folk Limited
Notes to the financial statements
For the year ended 30 January 2020
Page 10
1
Accounting policies
Company information
Folk2Folk Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Number One Business Centre, Western Road, Launceston, Cornwall, PL15 7FJ.
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 £
1
.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. The directors are not aware of material uncertainties which may cause doubt on the company's ability to continue as a going concern.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for
services provided to customers for peer to peer lending.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.4
Research and development expenditure
Development expenditure incurred on an individual project is carried forward when its future recoverability can reasonable be regarded as assured. Any expenditure carried forward is amortised in line with the expected future sales from the related projects.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Folk2Folk Limited
Notes to the financial statements (continued)
For the year ended 30 January 2020
1
Accounting policies (continued)
Page 11
Amortisation 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:
Website
25% straight line
Patents & licences
10% straight line
Software development
25% straight line
1.6
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:
Fixtures and fittings
25% straight line
Office equipment
25% 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
.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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.
1.8
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.
1.9
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.
Folk2Folk Limited
Notes to the financial statements (continued)
For the year ended 30 January 2020
1
Accounting policies (continued)
Page 12
Basic financial assets
Basic financial assets, which include debtors, 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.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
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.
1.10
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.
Folk2Folk Limited
Notes to the financial statements (continued)
For the year ended 30 January 2020
1
Accounting policies (continued)
Page 13
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Folk2Folk Limited
Notes to the financial statements (continued)
For the year ended 30 January 2020
1
Accounting policies (continued)
Page 14
1.14
Share-based payments
The share options programme allows employees to acquire shares of the parent company Folk Group Limited. The fair value of options granted is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the employee becomes unconditionally entitled to the options. The fair value of the options granted is measured based on market values at the date of grant, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of options that are vesting.
Where the Company's parent grant rights to its equity instruments to the Company's employees, which are accounted for as equity-settled in the accounts of the parent, the Company accounts for these share-based payments as equity settled.
1.15
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
Critical accounting 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.
There are not considered to be any significant estimates or judgements in the financial statements.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 40 (2019 - 45).
Folk2Folk Limited
Notes to the financial statements (continued)
For the year ended 30 January 2020
Page 15
4
Directors' remuneration and dividends
2020
2019
£
£
Remuneration paid to directors
227,564
321,141
5
Intangible fixed assets
Website
Patents & licences
Software development
Total
£
£
£
£
Cost
At 31 January 2019 and 30 January 2020
75,805
12,058
306,910
394,773
Amortisation and impairment
At 31 January 2019
44,696
4,673
217,024
266,393
Amortisation charged for the year
11,790
1,206
73,651
86,647
At 30 January 2020
56,486
5,879
290,675
353,040
Carrying amount
At 30 January 2020
19,319
6,179
16,235
41,733
At 30 January 2019
31,109
7,385
89,886
128,380
Folk2Folk Limited
Notes to the financial statements (continued)
For the year ended 30 January 2020
Page 16
6
Tangible fixed assets
Fixtures and fittings
Office equipment
Total
£
£
£
Cost
At 31 January 2019
67,864
40,966
108,830
Disposals
(61,518)
-
(61,518)
At 30 January 2020
6,346
40,966
47,312
Depreciation and impairment
At 31 January 2019
37,154
27,130
64,284
Depreciation charged in the year
15,552
8,291
23,843
Eliminated in respect of disposals
(46,360)
-
(46,360)
At 30 January 2020
6,346
35,421
41,767
Carrying amount
At 30 January 2020
-
5,545
5,545
At 30 January 2019
30,710
13,836
44,546
7
Debtors
2020
2019
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
251,824
245,730
Other debtors
235,766
224,430
Prepayments and accrued income
149,784
106,692
637,374
576,852
8
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
64,587
128,139
Amounts owed to group undertakings
57,374
57,374
Taxation and social security
27,505
37,628
Other creditors
77,622
140,402
227,088
363,543
Folk2Folk Limited
Notes to the financial statements (continued)
For the year ended 30 January 2020
Page 17
9
Share-based payment transactions
Certain employees of the Company participate in the share incentive schemes operated by the parent company Folk Group Limited, providing shares in the ultimate parent company.
The fair value of the options is calculated based on the Black Scholes valuation model and assumptions as determined by management at the date of grant of the share options.
Number of share options
Weighted average exercise price
2020
2019
2020
2019
Number
Number
£
£
Outstanding at 31 January 2019
1,350
1,350
112.00
112.00
Granted
500
600
114.17
200.00
Forfeited
(450)
(600)
184.02
200.00
Other adjustments
276
-
3.91
-
Outstanding at 30 January 2020
1,676
1,350
75.79
112.00
Exercisable at 30 January 2020
976
500
30.67
35.00
The options outstanding at 30 January 2020 had an exercise price ranging from £3.91 to £200.
The share options granted on 11 November 2015 are exercisable after a vesting period ranging between 2 and 3.5 years. The options are then exercisable by the employee up to November 2025.
The share options granted on 12 October 2016 are exercisable after a vesting period ranging between 3 and 3.5 years. The options are then exercisable by the employee up to October 2026.
The share options granted on 24 January 2020 are exercisable after a vesting period of 3 years. The options are then exercisable by the employee up to January 2030.
Folk2Folk Limited
Notes to the financial statements (continued)
For the year ended 30 January 2020
Page 18
10
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
13,330 (2019: 12,580) ordinary 'A' shares of £1 each
13,330
12,580
2,655 ordinary 'B' shares of £1 each
2,655
2,655
1,770 ordinary 'C' shares of £1 each
1,770
1,770
1,770 ordinary 'D' shares of £1 each
1,770
1,770
885 ordinary 'E' shares of £1 each
885
885
885 ordinary 'F' shares of £1 each
885
885
650 ordinary 'G' shares of £1 each
650
650
21,945
21,195
Share classes A-F are non redeemable shares which have full voting, equity and dividends rights.
Share class G are non redeemable, non voting shares which have full equity and dividends rights.
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
£
£
Within one year
118,346
152,490
Between two and five years
139,478
214,631
257,824
367,121
Folk2Folk Limited
Notes to the financial statements (continued)
For the year ended 30 January 2020
Page 19
12
Related party transactions
The company has taken advantage of the exemption provided by FRS102 to not disclose transactions entered into between two or more members of a group, provided that any subsidiary which is party to the transactions is wholly owned by such a member.
At 30 January 2020, the company owed £3,192 (2019: £19,631) to related parties under common control. There is no interest charged on these balances and the amounts are presented in trade creditors. During the year £71,552 (2019: £238,866) was invoiced by related parties in connection with services provided.
At 30 January 2020, amounts owed to the directors was £771 (2019: £nil). These amounts are presented in trade creditors.
During the year, a key management personnel member, issued funds to a peer-to-peer borrower through the company. The company generates fee income on the borrower's loan.
13
Events after the reporting date
Following the year end, the World Health Organisation declared a global pandemic in regards to the COVID-19
virus outbreak. No
amounts have been included within the financial statements in regards to this, as the
board of directors
are confident that
it will have no material impact on the
2020
Financial Statements
.
14
Parent company
The company's immediate parent is Folk Group Limited, incorporated in England and Wales.
The most senior parent entity producing publicly available financial statements is Folk Group Limited. These financial statements are available upon request from Companies House.
2020-01-30
2019-01-31
false
CCH Software
CCH Accounts Production 2019.200
Louis Mathers
Robert Parnall
Timothy Sawyer
Giles Cross
R Warren
M McCracken
A Daly
Roy Warren
Megan McCracken
08178576
2019-01-31
2020-01-30
08178576
bus:Director1
2019-01-31
2020-01-30
08178576
bus:Director3
2019-01-31
2020-01-30
08178576
bus:Director8
2019-01-31
2020-01-30
08178576
bus:Director9
2019-01-31
2020-01-30
08178576
bus:Director10
2019-01-31
2020-01-30
08178576
bus:Director11
2019-01-31
2020-01-30
08178576
bus:Director12
2019-01-31
2020-01-30
08178576
bus:Director2
2019-01-31
2020-01-30
08178576
bus:Director4
2019-01-31
2020-01-30
08178576
bus:Director5
2019-01-31
2020-01-30
08178576
bus:Director6
2019-01-31
2020-01-30
08178576
bus:Director7
2019-01-31
2020-01-30
08178576
bus:RegisteredOffice
2019-01-31
2020-01-30
08178576
2020-01-30
08178576
2018-02-01
2019-01-30
08178576
core:RetainedEarningsAccumulatedLosses
2019-01-31
2020-01-30
08178576
2019-01-30
08178576
core:ComputerSoftware
2020-01-30
08178576
core:PatentsTrademarksLicencesConcessionsSimilar
2020-01-30
08178576
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
2020-01-30
08178576
core:ComputerSoftware
2019-01-30
08178576
core:PatentsTrademarksLicencesConcessionsSimilar
2019-01-30
08178576
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
2019-01-30
08178576
core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment
2020-01-30
08178576
core:FurnitureFittings
2019-01-30
08178576
core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment
2019-01-30
08178576
core:CurrentFinancialInstruments
2020-01-30
08178576
core:CurrentFinancialInstruments
2019-01-30
08178576
core:ShareCapital
2020-01-30
08178576
core:ShareCapital
2019-01-30
08178576
core:SharePremium
2020-01-30
08178576
core:SharePremium
2019-01-30
08178576
core:CapitalRedemptionReserve
2020-01-30
08178576
core:CapitalRedemptionReserve
2019-01-30
08178576
core:RetainedEarningsAccumulatedLosses
2020-01-30
08178576
core:RetainedEarningsAccumulatedLosses
2019-01-30
08178576
core:SharePremium
2018-01-31
08178576
core:ShareCapitalOrdinaryShares
2020-01-30
08178576
core:ShareCapitalOrdinaryShares
2019-01-30
08178576
core:SharePremium
2018-02-01
2019-01-30
08178576
core:SharePremium
2019-01-31
2020-01-30
08178576
core:ShareCapital
2018-02-01
2019-01-30
08178576
core:ShareCapital
2019-01-31
2020-01-30
08178576
core:IntangibleAssetsOtherThanGoodwill
2019-01-31
2020-01-30
08178576
core:FurnitureFittings
2019-01-31
2020-01-30
08178576
core:ComputerSoftware
2019-01-30
08178576
core:PatentsTrademarksLicencesConcessionsSimilar
2019-01-30
08178576
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
2019-01-30
08178576
2019-01-30
08178576
core:ComputerSoftware
2019-01-31
2020-01-30
08178576
core:PatentsTrademarksLicencesConcessionsSimilar
2019-01-31
2020-01-30
08178576
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
2019-01-31
2020-01-30
08178576
core:FurnitureFittings
2019-01-30
08178576
core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment
2019-01-30
08178576
core:FurnitureFittings
2020-01-30
08178576
core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment
2019-01-31
2020-01-30
08178576
bus:PrivateLimitedCompanyLtd
2019-01-31
2020-01-30
08178576
bus:FRS102
2019-01-31
2020-01-30
08178576
bus:Audited
2019-01-31
2020-01-30
08178576
bus:FullAccounts
2019-01-31
2020-01-30
xbrli:pure
xbrli:shares
iso4217:GBP