Company No:
Contents
DIRECTORS | S Everett |
M R Matthews | |
A Mawby | |
F K Musto | |
S L Palmer | |
P R Ragan | |
SECRETARY | S Palmer |
REGISTERED OFFICE | The Threshing Barn |
Marsden Estate | |
Rendcomb | |
Cirencester | |
GL7 7EX | |
United Kingdom | |
COMPANY NUMBER | 08738725(England and Wales) |
ACCOUNTANT | Deloitte LLP |
1 New Street Square | |
London | |
EC4A 3HQ | |
United Kingdom |
As a practising member firm of of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at _www.icaew.com/regulation_.
It is your duty to ensure that Equine Register 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 Equine Register Limited. You consider that Equine Register Limited is exempt from the statutory audit requirement for the financial year.
We have not been instructed to carry out an audit or a review of the financial statements of Equine Register 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.
Accountant
London
EC4A 3HQ
United Kingdom
2020 | 2019 | |||
Note | £ | £ | ||
Fixed assets | ||||
Intangible assets | 3 |
|
|
|
Tangible assets | 4 |
|
|
|
367,882 | 252,989 | |||
Current assets | ||||
Debtors | 5 |
|
|
|
Cash at bank and in hand |
|
|
||
585,718 | 461,703 | |||
Creditors | ||||
Amounts falling due within one year | 6 | (
|
(
|
|
Net current liabilities | (181,900) | (183,099) | ||
Total assets less current liabilities | 185,982 | 69,890 | ||
Creditors | ||||
Amounts falling due after more than one year | 7 | (
|
|
|
Net assets |
|
|
||
Capital and reserves | ||||
Called-up share capital |
|
|
||
Share premium account |
|
|
||
Profit and loss account | (
|
(
|
||
Total shareholders' funds |
|
|
Directors’ responsibilities:
The financial statements of Equine Register Limited (registered number:
S L Palmer
Director |
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year.
Equine Register Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is The Threshing Barn, Marsden Estate, Rendcomb, Cirencester, GL7 7EX, United Kingdom.
The financial statements have been prepared under the historical cost convention and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council.
The functional currency of Equine Register Limited is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates.
The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The Company is supported through working capital generated by the business, loans from shareholders and Covid-19 related government funding during the year. Post year end the Company received a Coronavirus Business Interruption Loan. Based on this financial support, the profitability of the business and the cash generated, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
The rapid spreading of Covid-19 has continued to be a significant risk to the global economy. The directors continue to monitor the impact of the virus on the business as more information about the epidemic emerges. At the time of signing, the directors do not consider Covid-19 to impact the Company’s ability to continue as a going concern.
Finance costs are charged to the Profit and Loss Account over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.
Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws.
Deferred tax assets and liabilities are not discounted.
Intangible fixed assets are comprised of trademark and patent costs, and development costs. Research expenditure is written off as incurred. Development expenditure is also written off as incurred, except where the directors are satisfied as to the technical, commercial and financial viability of individual projects. In such cases, the identifiable expenditure is capitalised as an intangible asset and amortised over the period during which the Company is expected to benefit.
Amortisation is provided to write off each class of asset over its estimated useful life on a straight line basis of 10, 5 and 3 years respectively.
Office equipment - 25%
Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.
Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.
Non-financial assets
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Financial assets
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
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.
Financial assets and liabilities
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through the Profit and Loss Account, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
2020 | 2019 | ||
Number | Number | ||
Monthly average number of persons employed by the Company during the year, including directors |
|
|
Development costs | Trademarks, patents and licences | Total | |||
£ | £ | £ | |||
Cost | |||||
At 01 November 2019 |
|
|
|
||
Additions |
|
|
|
||
At 31 October 2020 |
|
|
|
||
Accumulated amortisation | |||||
At 01 November 2019 |
|
|
|
||
Charge for the financial year |
|
|
|
||
Eliminated on disposal |
|
|
|
||
At 31 October 2020 |
|
|
|
||
Net book value | |||||
At 31 October 2020 |
|
|
|
||
At 31 October 2019 |
|
|
|
Office equipment | Total | ||
£ | £ | ||
Cost | |||
At 01 November 2019 |
|
|
|
Additions |
|
|
|
At 31 October 2020 |
|
|
|
Accumulated depreciation | |||
At 01 November 2019 |
|
|
|
Charge for the financial year |
|
|
|
At 31 October 2020 |
|
|
|
Net book value | |||
At 31 October 2020 |
|
|
|
At 31 October 2019 |
|
|
2020 | 2019 | ||
£ | £ | ||
Trade debtors |
|
|
|
Deferred tax asset |
|
|
|
Corporation tax |
|
|
|
Other debtors |
|
|
|
|
|
2020 | 2019 | ||
£ | £ | ||
Bank loans and overdrafts |
|
|
|
Trade creditors |
|
|
|
Other creditors |
|
|
|
Other taxation and social security |
|
|
|
|
|
2020 | 2019 | ||
£ | £ | ||
Bank loans |
|
|
In May 2020 the Company took out a Bounce Back Loan. Monthly repayments were due to start from June 2021, however the loan was repaid post year end. The classification of loan repayments has been shown split between due within one year and after one year in line with the legal agreement in place at the year end.
During the year, the directors received remuneration of £326,143 (2019: £411,838). The directors are the only key management personnel of the Company. Included with creditors is an amount owed to an individual of £171,337 (2019: £137,004) who ceased to be a director post year end.
Included within creditors is an unsecured loan of £23,678 (2019: £26,678) owed to shareholders of the Company. The shareholder loans incur 20% interest and are repayable on demand. Included within other creditors is an unsecured directors loan of £nil (2019: £20,004). The directors loan incurred 20% interest and and was repayable on demand.
On 1 November 2020 the Company obtained a Coronavirus Business Interruption Loan of £375,000. This bank loan is secured by a debenture over the Company, is interest bearing and is repayable over 6 years.
Since the period under review, the rapid spreading of COVID-19 has continued to be a significant risk to the global economy. The directors continue to monitor the impact of the virus on the business as more information about the epidemic emerges and adjust the business’ operations to respond to the circumstances.