Company Registration No. 08367428 (England and Wales)
EEBRIA LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
EEBRIA LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 10
EEBRIA LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
4,350
8,660
Investments
4
1
-
4,351
8,660
Current assets
Stocks
5,000
-
Debtors
6
242,073
178,280
Cash at bank and in hand
135,930
252,438
383,003
430,718
Creditors: amounts falling due within one year
7
(453,099)
(307,611)
Net current (liabilities)/assets
(70,096)
123,107
Total assets less current liabilities
(65,745)
131,767
Creditors: amounts falling due after more than one year
8
(25,000)
(55,015)
Net (liabilities)/assets
(90,745)
76,752
Capital and reserves
Called up share capital
1,115
1,115
Share premium account
1,372,055
1,372,055
Equity reserve
9
229,445
-
Profit and loss reserves
(1,693,360)
(1,296,418)
Total equity
(90,745)
76,752
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2019 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 members have 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.
EEBRIA LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2019
31 December 2019
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 7 September 2020 and are signed on its behalf by:
R S Jackson
Director
Company Registration No. 08367428
EEBRIA LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
Share capital
Share premium account
Equity reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 February 2018
1,115
1,372,055
-
(847,476)
525,694
Year ended 31 December 2018:
Loss and total comprehensive income for the year
-
-
-
(448,942)
(448,942)
Balance at 31 December 2018
1,115
1,372,055
-
(1,296,418)
76,752
Year ended 31 December 2019:
Loss and total comprehensive income for the year
-
-
-
(396,942)
(396,942)
Issue of advance subscriptions
-
-
229,445
-
229,445
Balance at 31 December 2019
1,115
1,372,055
229,445
(1,693,360)
(90,745)
EEBRIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 4 -
1
Accounting policies
Company information
Eebria Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
15 Almond Road, London, SE16 3LR.
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. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The financial statements present information about the company as an individual entity and not about its group
.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Each revenue stream is considered by management with regards to achieving the best commercial, legal and reporting transparency for the transaction in question:
EeBriaTrade Platform
The proceeds from any sale via the
eebriatrade.com
marketplace is appropriately divided up into the constituent elements:
-
Shipping income is recognised at the point of sale and at the full value charged to the customer or seller when the transaction is placed on the website.
-
The element of the sale which is brokered by the platform for the product itself, which is sent from the seller directly to the customer, is accounted for on an agency basis. Only the fee charged to the seller and retained from the sale is recognised as revenue in the accounts. The remainder of the income from the transaction is recognised as a liability payable to the seller at the point at which the transaction is placed on the platform.
-
Sale of internationally imported products are recognised at the full principal value of the sale at the point the order is committed at checkout, the costs of the import and goods are reflected in Cost of Sales.
-
Any other charges applied to sellers for use of the platform are accounted for at the full value of the benefit to EeBria at the point of the charge being applied to the seller's account.
EEBRIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 5 -
EeBria.com Platform
Until September 2019, revenue recognition was similar to that of the wholesale platform with shipping income, and fee income from brokered transactions recognised as revenue and a liability created and paid for the element of the sale that we organised on behalf of the seller. From September 2019 the
eebria.com
website was repurposed to a standard online shop model, with orders fulfilled from our own site and our purchased stock. Therefore all revenue going forward on the platform will be on a principal basis and recognised at the point the order is placed.
Gift Vouchers sold on the platform are not recognised as revenue until they are used in a transaction on the website or they pass their expiration date.
Other Income
Income such as revenue from the EeeBria Taproom is recognised on a principal basis, in full after sales taxes and on the date of the purchase.
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
3 - 4 years straight line
Fixtures and fittings
3 - 4 years straight line
Computers
3 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.6
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.
EEBRIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 6 -
1.7
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
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.
1.8
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets.
When applicable
b
ank 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’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet 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 and bank loans, 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.
EEBRIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 7 -
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.
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 profit and loss account 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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.
1.14
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.
EEBRIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 8 -
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Total
19
18
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2019
11,064
14,431
25,495
Additions
-
932
932
At 31 December 2019
11,064
15,363
26,427
Depreciation and impairment
At 1 January 2019
8,431
8,404
16,835
Depreciation charged in the year
2,020
3,222
5,242
At 31 December 2019
10,451
11,626
22,077
Carrying amount
At 31 December 2019
613
3,737
4,350
At 31 December 2018
2,633
6,027
8,660
4
Fixed asset investments
2019
2018
£
£
Shares in group undertakings
1
-
EEBRIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
4
Fixed asset investments
(Continued)
- 9 -
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2019
-
Additions
1
At 31 December 2019
1
Carrying amount
At 31 December 2019
1
At 31 December 2018
-
5
Subsidiaries
Details of the company's subsidiaries at 31 December 2019 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
EeBria Europe Holdings Limited
15 Almond Road, London, England, SE16 3LR
Ordinary shares
100.00
6
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
136,179
70,688
Corporation tax recoverable
63,778
69,945
Other debtors
42,116
37,647
242,073
178,280
7
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
270,330
252,042
Taxation and social security
29,550
49,597
Other creditors
153,219
5,972
453,099
307,611
EEBRIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 10 -
8
Creditors: amounts falling due after more than one year
2019
2018
£
£
Other creditors
25,000
55,015
At the balance sheet date, £25,000 included in other creditors was due to D Jackson, a director of the company. The director has elected to waive any interest due on the loan balance for the year ended 31 December 2019, the loan is not repayable within 12 months of these accounts.
9
Equity reserve
During the year £229,445 was received in advanced for share subscription which were issued post year end. The balance must be settled by way of share issue within 12 months of the agreement. The Company has recognised the corresponding increase in equity to the extent consideration is received. After the year end, 3,333,312 Ordinary shares are issued relating to the advanced share subscription.
10
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:
2019
2018
£
£
Within 1 - 5 years
4,780
4,550