Company Registration No. 09123710 (England and Wales)
SWITCHEE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2020
PAGES FOR FILING WITH REGISTRAR
SWITCHEE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
SWITCHEE LIMITED
BALANCE SHEET
AS AT
30 APRIL 2020
30 April 2020
- 1 -
2020
2019
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
3
16,405
18,831
Tangible assets
4
24,477
23,803
40,882
42,634
Current assets
Stocks
495,289
517,385
Debtors
5
420,503
607,421
Cash at bank and in hand
1,956,200
279,728
2,871,992
1,404,534
Creditors: amounts falling due within one year
6
(950,996)
(442,768)
Net current assets
1,920,996
961,766
Total assets less current liabilities
1,961,878
1,004,400
Capital and reserves
Called up share capital
10,118
10,085
Share premium account
7
4,328,578
2,399,276
Profit and loss reserves
(2,376,818)
(1,404,961)
Total equity
1,961,878
1,004,400
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 30 April 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 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.
The financial statements were approved by the board of directors and authorised for issue on 28 July 2021 and are signed on its behalf by:
Mr Adam Fudakowski
Director
Company Registration No. 09123710
SWITCHEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2020
- 2 -
1
Accounting policies
Company information
Switchee Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Somerset House Strand, West Goods Entrance, London, England, WC2R 1LA.
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.
1.2
Going concern
The directors have considered the effect of the Covid-19 outbreak. The outbreak has caused little disruption to the company’s business to date. The directors consider it unlikely that a prolonged outbreak will cause significant disruption. Accordingly, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future.
true
This is supported by the substantial investment received during the year and by an increase in pipeline work post year-end.
Thus 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
.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
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.
Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Patent
10% Straight line
1.6
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings and equipment
33.33% Straight line
SWITCHEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
1
Accounting policies
(Continued)
- 3 -
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.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises
of
direct materials.
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.
1.9
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand
and
deposits held at call with banks
.
1.10
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 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, 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.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
SWITCHEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
1
Accounting policies
(Continued)
- 4 -
1.12
Taxation
The tax expense represents the tax currently payable.
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.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
expense
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 asset are consumed.
1.16
Grant income
Grant income
are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
20
18
SWITCHEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
- 5 -
3
Intangible fixed assets
Patent
£
Cost
At 1 May 2019 and 30 April 2020
24,258
Amortisation and impairment
At 1 May 2019
5,427
Amortisation charged for the year
2,426
At 30 April 2020
7,853
Carrying amount
At 30 April 2020
16,405
At 30 April 2019
18,831
4
Tangible fixed assets
Fixtures, fittings and equipment
£
Cost
At 1 May 2019
35,461
Additions
13,760
At 30 April 2020
49,221
Depreciation and impairment
At 1 May 2019
11,658
Depreciation charged in the year
13,086
At 30 April 2020
24,744
Carrying amount
At 30 April 2020
24,477
At 30 April 2019
23,803
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
391,953
185,942
Corporation tax recoverable
37
85,848
Other debtors
4,023
61,669
Prepayments and accrued income
24,490
273,962
420,503
607,421
SWITCHEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
- 6 -
6
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
248,671
248,217
Taxation and social security
103,083
28,124
Other creditors
22,248
21,853
Accruals and deferred income
576,994
144,574
950,996
442,768
7
Share premium account
2020
2019
£
£
At the beginning of the year
2,399,276
2,399,276
Issue of new shares
1,929,302
At the end of the year
4,328,578
2,399,276
8
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 30 Apr 2019
£
£
£
Current assets
Stocks
473,816
43,569
517,385
Creditors due within one year
Other creditors
(369,489)
(45,155)
(414,644)
Net assets
1,005,986
(1,586)
1,004,400
Capital and reserves
Profit and loss
(1,403,375)
(1,586)
(1,404,961)
SWITCHEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
8
Prior period adjustment
(Continued)
- 7 -
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 30 April 2019
£
£
£
Turnover
679,722
(45,155)
634,567
Cost of sales
(339,067)
43,569
(295,498)
Loss for the financial period
(274,222)
(1,586)
(275,808)
The directors have restated the prior year comparatives due to a material inaccuracy in the recognition of sales and the recording of cost of sales. The expenses in question should have been accounted for as stock on hand at year end and the related sales should have been accounted for as deferred income.
As a result of the adjustment, sales have decreased £45,155 and costs of sales has decreased by £43,569.