Company Registration No. 09347088 (England and Wales)
iSmash UK Trading Limited
Annual report and
group financial statements
for the year ended 31 December 2020
iSmash UK Trading Limited
Company information
Directors
Julian Shovlin
Dermot O'rourke
Richard Walker
Fiona Hornsby
Christopher Murton
Elizabeth Wynn
Max Price
(Appointed 9 October 2020)
Company number
09347088
Registered office
Suite 3.08
20 Procter Street
London
WC1V 6NX
Independent auditor
Saffery Champness LLP
71 Queen Victoria Street
London
EC4V 4BE
iSmash UK Trading Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 9
Income statement
10
Group statement of comprehensive income
11
Group statement of financial position
12
Company statement of financial position
13 - 14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Company statement of cash flows
18
iSmash UK Trading Limited
Contents
Notes to the financial statements
19 - 39
iSmash UK Trading Limited
Strategic report
For the year ended 31 December 2020
Page 1
The directors present the strategic report for the year ended 31 December 2020.
Fair review of the business
After a positive start to the year, iSmash faced significant challenges in 2020 as a result of the coronavirus pandemic – closing all of its service centres from late March 2020 to mid-June 2020 in line with the Government mandated lockdown.
Notwithstanding the sudden shock to the business of the pandemic, the company reported steady growth on re-opening in June 2020, although its trading performance continued to underperform versus 2019.
The company made an operating loss of £2,602k during the year, increased from £1,506K in 2019. This reflects the impact of the coronavirus pandemic, although its affects were partially mitigated as the company availed of Government Support via the Coronavirus Job Retention Scheme, Rates Relief and via council grants for smaller rateable properties. These measures delivered a welcome cash injection into the business, whilst allowing the company to flex its cost base and adapt in real time to changes in demand.
Additionally, in-store productivity improvements through the dual skilling of the workforce, as well as optimisation of the central infrastructure, have delivered a material reduction in overheads. It is believed that these efficiencies will be sustained, and deliver enduring profitability gains.
The business also opened its first Sky/iSmash location in October 2020 with Liverpool One, and the company continues to leverage Sky advertising services to promote its services and increase brand awareness.
Principal Risks and Uncertainties
The company reviews its risks regularly and considers its principal risks to be the wider macro economy and the continued changes in the retail environment as a result of the coronavirus pandemic.
The macro economy and the coronavirus situation will be inextricably entwined for the foreseeable future, however, the company does not anticipate a reduction in demand in the market over the longer term and is well placed to adapt to changing customer behaviours.
Key performance indicators
The key KPIs that the business monitors are revenue, gross profit and repair numbers. These are monitored daily.
Revenue fell during the year by £5,823k, however improvements in revenue quality and gross profit margin meant that gross profit performance was down by £4,660k. Despite a positive start to 2020, which saw growth year-on-year, the mandated lockdown in March 2020 and ensuing restrictions due to the pandemic was the primary driver in the overall fall in performance.
iSmash UK Trading Limited
Strategic report (continued)
For the year ended 31 December 2020
Page 2
Outlook
At the point of writing this report in February 2022, the UK has recently lifted government mandated restrictions, although iSmash believe that the ongoing uncertainty caused by the pandemic will continue to affect consumer confidence and behaviours in the mid-term and adversely impact trading performance, nevertheless the company remains optimistic for the future.
It is believed that the company is in a strong position to recover and can outperform the traditional retail sector given that iSmash is a needs-based business, which acquires a significant proportion of its customer online before servicing them in store. The return of workers to office locations, especially in central London, is anticipated to boost trading in transport and convenience locations within the iSmash service centre footprint.
Furthermore, the recent parent company investment by Telus Ventures in September 2021, which provided a significant cash injection, has put the business in a strong financial position, strengthening the company balance sheet and enabling the pay down of all long-term loan facilities. The parent company investment will also allow iSmash to develop its service channels, broaden its customer proposition and expand channel partnerships – providing a solid platform for growth.
Julian Shovlin
Director
28 March 2022
iSmash UK Trading Limited
Directors' report
For the year ended 31 December 2020
Page 3
The directors present their annual report and financial statements for the year ended 31 December 2020.
Principal activities
The principal activity of the company and group continued to be that of repair of communication equipment.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Julian Shovlin
Dermot O'rourke
Richard Walker
Fiona Hornsby
Susanna Winkler
(Resigned 2 November 2020)
Christopher Murton
Carli Farmer
(Resigned 8 October 2020)
Edward Fry
(Resigned 10 June 2020)
Elizabeth Wynn
Max Price
(Appointed 9 October 2020)
Financial instruments
Liquidity risk
The Group manages its cash flows in order to maximise interest income and minimise interest expense, whilst ensuring the Group has enough liquid resources to meet the operating needs of the business.
Interest rate risk
Whilst the Group does not have any debt apart from leased in the normal course of business, the Group will manage its cash and borrowings in the most effective way possible to minimise any actual or potential interest rate cost.
Credit risk
The Group has at present substantial cash surpluses, the use of which must be cleared by the Board but are held are held wholly and exclusively for the benefit of the Group's operating companies.
Price risk
This is continually evaluated by the Board and management of the Group's companies.
iSmash UK Trading Limited
Directors' report (continued)
For the year ended 31 December 2020
Page 4
Future developments
The business expects to continue its growth plans and expects to open further stores during the 2021 and 2022 calendar year.
Auditor
In accordance with the company's articles, a resolution proposing that Saffery Champness LLP be reappointed as auditor of the group will be put at a General Meeting.
Energy and carbon report
As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
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 group and company, and of the profit or loss of the group 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;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the
;
-
prepare the
on the going concern basis unless it is inappropriate to presume that the
group and
company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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 auditor
of the
company 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 auditor
of the
company
is
aware of that information.
iSmash UK Trading Limited
Directors' report (continued)
For the year ended 31 December 2020
Page 5
Going concern
Despite future optimism, iSmash is forecasting trading will continue to be adversely impacted over the mid-term due to the exceptional circumstances caused by the global pandemic.
The board acknowledges that iSmash UK Trading Limited has total net liabilities of £10,444k at a group level, which is also its net current liability position as at 31 December 2020, however it has an amount outstanding to its parent company iSmash Group Limited of £16,741k. This amount is recorded as a current liability, but the board has obtained support from the parent company with regards to future repayment of this balance.
In the strategic report the board has reported on the Telus Ventures investment, which has put the business in a far stronger financial position as a result, providing a needed cash boost during what continues to be an exceptional trading environment.
In addition, the board has reviewed the budgets for 2022 alongside the long-term forecasts for subsequent years with detailed analysis and implemented a minimum cash buffer for the business. The board believes that iSmash UK Trading Limited is a going concern and no significant uncertainty exists in this respect.
On behalf of the board
Julian Shovlin
Director
28 March 2022
iSmash UK Trading Limited
Independent auditor's report
To the members of iSmash UK Trading Limited
Page 6
Opinion
We have audited the
financial statements of
iSmash UK Trading Limited
(the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2020 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements,
including
significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 group and of the parent company's affairs as at 31 December 2020 and of the group's loss 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 group and the parent 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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the
parent
company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
iSmash UK Trading Limited
Independent auditor's report (continued)
To the members of iSmash UK Trading Limited
Page 7
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.
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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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
the
audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have 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
group and the parent
company and
their
environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
-
the parent company 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
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
parent
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
parent
company or to cease operations, or have no realistic alternative but to do so.
iSmash UK Trading Limited
Independent auditor's report (continued)
To the members of iSmash UK Trading Limited
Page 8
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the group and parent company 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
iSmash UK Trading Limited
Independent auditor's report (continued)
To the members of iSmash UK Trading Limited
Page 9
This report is made solely to the parent 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 parent 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 parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed
Lucy Brennan (Senior Statutory Auditor)
For and on behalf of Saffery Champness LLP
28 March 2022
Chartered Accountants
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
iSmash UK Trading Limited
Group income statement
For the year ended 31 December 2020
Page 10
2020
2019
as restated
Notes
£
£
Turnover
3
9,979,077
15,801,760
Cost of sales
(4,648,992)
(5,812,101)
Gross profit
5,330,085
9,989,659
Administrative expenses
(9,247,803)
(11,496,075)
Other operating income
1,315,516
-
Operating loss
4
(2,602,202)
(1,506,416)
Interest payable and similar expenses
8
(622,618)
(439,690)
Other gains and losses
9
(3,619)
(310,394)
Loss before taxation
(3,228,439)
(2,256,500)
Tax on loss
10
-
-
Loss for the financial year
(3,228,439)
(2,256,500)
Loss for the financial year is all attributable to the owner of the parent company.
iSmash UK Trading Limited
Group statement of comprehensive income
For the year ended 31 December 2020
Page 11
2020
2019
£
£
Loss for the year
(3,228,439)
(2,256,500)
Other comprehensive income
-
-
Total comprehensive income for the year
(3,228,439)
(2,256,500)
Total comprehensive income for the year is all attributable to the owners of the parent company.
iSmash UK Trading Limited
Group statement of financial position
As at 31 December 2020
Page 12
2020
2019
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
11
182,773
158,666
Tangible assets
12
2,205,669
2,589,916
2,388,442
2,748,582
Current assets
Stocks
16
1,347,735
1,707,725
Debtors
17
5,560,776
6,123,451
Cash at bank and in hand
496,283
266,240
7,404,794
8,097,416
Creditors: amounts falling due within one year
18
(20,237,245)
(12,538,054)
Net current liabilities
(12,832,451)
(4,440,638)
Total assets less current liabilities
(10,444,009)
(1,692,056)
Creditors: amounts falling due after more than one year
19
-
(5,523,514)
Net liabilities
(10,444,009)
(7,215,570)
Capital and reserves
Called up share capital
22
1,072,509
1,072,509
Profit and loss reserves
(11,516,518)
(8,288,079)
Total equity
(10,444,009)
(7,215,570)
The financial statements were approved by the board of directors and authorised for issue on 28 March 2022 and are signed on its behalf by:
Julian Shovlin
Director
Company Registration No. 09347088
iSmash UK Trading Limited
Company statement of financial position
As at 31 December 2020
31 December 2020
Page 13
2020
2019
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
11
182,773
158,666
Tangible assets
12
2,103,682
2,453,555
Investments
13
61,656
61,656
2,348,111
2,673,877
Current assets
Stocks
16
1,347,735
1,707,725
Debtors
17
5,696,677
6,271,765
Cash at bank and in hand
495,964
265,921
7,540,376
8,245,411
Creditors: amounts falling due within one year
18
(20,424,972)
(12,703,914)
Net current liabilities
(12,884,596)
(4,458,503)
Total assets less current liabilities
(10,536,485)
(1,784,626)
Creditors: amounts falling due after more than one year
19
-
(5,523,514)
Net liabilities
(10,536,485)
(7,308,140)
Capital and reserves
Called up share capital
22
1,072,509
1,072,509
Profit and loss reserves
(11,608,994)
(8,380,649)
Total equity
(10,536,485)
(7,308,140)
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s loss for the year was £3,228,345 (2019 - £3,267,244 loss).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
iSmash UK Trading Limited
Company statement of financial position (continued)
As at 31 December 2020
31 December 2020
Page 14
The financial statements were approved by the board of directors and authorised for issue on 28 March 2022 and are signed on its behalf by:
Julian Shovlin
Director
Company Registration No. 09347088
iSmash UK Trading Limited
Group statement of changes in equity
For the year ended 31 December 2020
Page 15
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the year ended 31 December 2019:
Balance at 1 January 2019
1,072,398
(6,031,580)
(4,959,182)
Period ended 31 December 2019:
Loss and total comprehensive income for the period
-
(2,256,500)
(2,256,500)
Issue of share capital
22
111
-
111
Balance at 31 December 2019
1,072,509
(8,288,080)
(7,215,571)
Year ended 31 December 2020:
Loss and total comprehensive income for the year
-
(3,228,439)
(3,228,439)
Balance at 31 December 2020
1,072,509
(11,516,519)
(10,444,010)
iSmash UK Trading Limited
Company statement of changes in equity
For the year ended 31 December 2020
Page 16
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the year ended 31 December 2019:
Balance at 1 January 2019
1,072,398
(5,113,405)
(4,041,007)
Period ended 31 December 2019:
Loss and total comprehensive income for the period
-
(3,267,244)
(3,267,244)
Issue of share capital
22
111
-
111
Balance at 31 December 2019
1,072,509
(8,380,649)
(7,308,140)
Year ended 31 December 2020:
Loss and total comprehensive income for the year
-
(3,228,345)
(3,228,345)
Balance at 31 December 2020
1,072,509
(11,608,994)
(10,536,485)
iSmash UK Trading Limited
Group statement of cash flows
For the year ended 31 December 2020
Page 17
2020
2019 as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
1,435,664
(1,547,820)
Interest paid
(916,695)
(594,500)
Net cash inflow/(outflow) from operating activities
518,969
(2,142,320)
Investing activities
Purchase of intangible assets
(47,027)
(32,003)
Proceeds on disposal of intangibles
(6,459)
-
Purchase of tangible fixed assets
(110,150)
(151,854)
Proceeds on disposal of tangible fixed assets
10,079
28,870
Proceeds on disposal of fixed asset investments
-
(281,523)
Proceeds from other investments and loans
(3,619)
198,591
Net cash used in investing activities
(157,176)
(237,919)
Financing activities
Movement on prepaid services
(125,000)
(4,500,000)
Movement on intercompany borrowings
-
7,000,000
Repayment of borrowings
(6,750)
13,500
Net cash (used in)/generated from financing activities
(131,750)
2,513,500
Net increase in cash and cash equivalents
230,043
133,261
Cash and cash equivalents at beginning of year
266,015
132,754
Cash and cash equivalents at end of year
496,058
266,015
Relating to:
Cash at bank and in hand
496,283
266,240
Bank overdrafts included in creditors payable within one year
(225)
(225)
iSmash UK Trading Limited
Company statement of cash flows
For the year ended 31 December 2020
Page 18
2020
2019 as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
30
1,435,664
(1,547,112)
Interest paid
(916,695)
(594,500)
Net cash inflow/(outflow) from operating activities
518,969
(2,141,612)
Investing activities
Purchase of intangible assets
(47,027)
(32,003)
Proceeds on disposal of intangibles
(6,459)
Purchase of tangible fixed assets
(110,150)
(151,854)
Proceeds on disposal of tangible fixed assets
10,079
28,870
Proceeds on disposal of fixed asset investments
(281,523)
Proceeds from other investments and loans
(3,619)
198,591
Net cash used in investing activities
(157,176)
(237,919)
Financing activities
Movement on prepaid services
(125,000)
(4,500,000)
Movement on intercompany borrowings
7,000,000
Repayment of borrowings
(6,750)
13,500
Net cash (used in)/generated from financing activities
(131,750)
2,513,500
Net increase in cash and cash equivalents
230,043
133,969
Cash and cash equivalents at beginning of year
265,921
131,952
Cash and cash equivalents at end of year
495,964
265,921
iSmash UK Trading Limited
Notes to the financial statements
For the year ended 31 December 2020
Page 19
1
Accounting policies
Company information
iSmash UK Trading Limited (“the company”)
is a
private
limited company incorporated in
England and Wales
.
The registered office is
Suite 3.08, 20 Procter Street, London, WC1V 6NX.
The group consists of iSmash UK Trading Limited and all of its subsidiaries.
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.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The group follows a 4-4-5 accounting calendar, as such the financial statements are prepared to 3 January 2021.
1.2
Basis of consolidation
In the parent company
financial statements, t
he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
I
nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
The consolidated group financial statements consist of the financial statements of the parent company
iSmash UK Trading Limited
together with
all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates
.
All
financial statements
are made up to 31 December 2020
.
Where necessary, adjustments are made to the
financial statements
of subsidiaries to bring the accounting policies used into line with those used by other members of the
g
roup.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
1
Accounting policies (continued)
Page 20
1.3
Going concern
The directors acknowledge the company is in a net liability position due to investment in the company's growth to date. As described in the directors' report on page 6 the group has the support of its parent company shareholders and the director's have an expectation that further funds will be available in order to continue the groups growth plans. As a result, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
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.
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.
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.
1.5
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
.
1.6
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.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
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
3 or 10 years straight line
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
1
Accounting policies (continued)
Page 21
1.7
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 land and buildings
10 years straight line
Fixtures and fittings
3 or 5 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 recognised in the
income statement
.
1.8
Fixed asset investments
Equity in
vest
ments are measured at fair value through profit or loss
,
except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably
,
which are recognised at cost less impairment until a reliable measure of fair value becomes available.
I
n the parent company
financial statements,
investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the
group. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.9
Impairment of fixed assets
At each reporting
period
end date, the
group
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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
1
Accounting policies (continued)
Page 22
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.
1.10
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.
1.11
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.
1.12
Financial instruments
The group 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 group's
statement of financial position
when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
1
Accounting policies (continued)
Page 23
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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 group 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. Amounts 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.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
1
Accounting policies (continued)
Page 24
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
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
d
asset are consumed.
1.17
Government grants
Government grants 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.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred
. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
The government grants included in the Profit and Loss Account for the year ended 31 December 2020 relate to business support issued by the UK government in response to the Covid-19 pandemic.
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
Page 25
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the group’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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Stock valuation
Stock is carried at the lower of cost and net realisable value. Realisable value includes, where necessary, provisions for slow moving and obsolete stock. The calculation of these provisions require judgements to be made, which include using the ageing profile of the stock on hand, historical sales patterns, post year end trading patterns and forecast consumer demand.
There was a write down of stock of £123,013 in the year, increasing the stock provision from the opening balance of £58,000 at 31 December 2019 to a closing balance of £181,013 at 31 December 2020.
3
Turnover and other revenue
2020
2019
£
£
Turnover analysed by class of business
9,979,077
15,801,760
2020
2019
£
£
Other significant revenue
Grants received
1,315,516
-
2020
2019
£
£
Turnover analysed by geographical market
United Kingdom
9,979,077
15,801,760
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
Page 26
4
Operating loss
2020
2019
£
£
Operating loss for the year is stated after charging/(crediting):
Research and development costs
-
984
Government grants
(1,315,516)
-
Depreciation of owned tangible fixed assets
484,318
471,350
Amortisation of intangible assets
29,379
22,976
Cost of stocks recognised as an expense
4,525,979
5,987,214
Stocks impairment losses recognised or reversed
123,013
(175,113)
5
Auditor's remuneration
2020
2019
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
31,500
33,800
Audit of the financial statements of the company's subsidiaries
2,000
1,900
33,500
35,700
For other services
Taxation compliance services
7,000
7,000
All other non-audit services
6,000
13,500
13,000
20,500
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2020
2019
2020
2019
Number
Number
Number
Number
Average number of employees
171
185
171
185
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
6
Employees (continued)
Page 27
Their aggregate remuneration comprised:
Group
Company
2020
2019
2020
2019
£
£
£
£
Wages and salaries
4,361,682
5,076,300
4,361,682
5,076,300
Social security costs
360,163
451,227
360,163
451,227
Pension costs
72,566
91,766
72,566
91,766
4,794,411
5,619,293
4,794,411
5,619,293
7
Directors' remuneration
2020
2019
£
£
Remuneration for qualifying services
461,366
458,333
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2020
2019
£
£
Remuneration for qualifying services
177,707
206,931
Company pension contributions to defined contribution schemes
2,449
7,409
8
Interest payable and similar expenses
2020
2019
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
619,577
428,809
Other finance costs:
Other interest
3,041
10,881
Total finance costs
622,618
439,690
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
Page 28
9
Other gains and losses
2020
2019
£
£
Amounts written back to/(written off) current loans
-
(281,523)
Amounts written off financial assets held at cost
(3,619)
(28,871)
(3,619)
(310,394)
10
Taxation
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2020
2019
£
£
Loss before taxation
(3,228,439)
(2,256,500)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
(613,403)
(428,735)
Unutilised tax losses carried forward
613,403
428,735
Taxation charge
-
-
11
Intangible fixed assets
Group
Website
£
Cost
At 1 January 2020
219,610
Additions
47,027
Transfers
6,459
At 31 December 2020
273,096
Amortisation and impairment
At 1 January 2020
60,944
Amortisation charged for the year
29,379
At 31 December 2020
90,323
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
11
Intangible fixed assets (continued)
Page 29
Carrying amount
At 31 December 2020
182,773
At 31 December 2019
158,666
Company
Website
£
Cost
At 1 January 2020
219,610
Additions
47,027
Transfers
6,459
At 31 December 2020
273,096
Amortisation and impairment
At 1 January 2020
60,944
Amortisation charged for the year
29,379
At 31 December 2020
90,323
Carrying amount
At 31 December 2020
182,773
At 31 December 2019
158,666
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
Page 30
12
Tangible fixed assets
Group
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2020
3,257,642
723,333
114,939
4,095,914
Additions
88,246
13,086
8,818
110,150
Disposals
(3,620)
-
-
(3,620)
Transfers
-
(7,592)
-
(7,592)
At 31 December 2020
3,342,268
728,827
123,757
4,194,852
Depreciation and impairment
At 1 January 2020
993,653
418,692
93,653
1,505,998
Depreciation charged in the year
356,612
111,761
15,945
484,318
Transfers
-
(1,133)
-
(1,133)
At 31 December 2020
1,350,265
529,320
109,598
1,989,183
Carrying amount
At 31 December 2020
1,992,003
199,507
14,159
2,205,669
At 31 December 2019
2,263,989
304,641
21,286
2,589,916
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
12
Tangible fixed assets (continued)
Page 31
Company
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2020
2,918,500
723,333
114,939
3,756,772
Additions
88,246
13,086
8,818
110,150
Disposals
(3,620)
(3,620)
Transfers
(7,592)
(7,592)
At 31 December 2020
3,003,126
728,827
123,757
3,855,710
Depreciation and impairment
At 1 January 2020
790,872
418,692
93,653
1,303,217
Depreciation charged in the year
322,238
111,761
15,945
449,944
Transfers
(1,133)
(1,133)
At 31 December 2020
1,113,110
529,320
109,598
1,752,028
Carrying amount
At 31 December 2020
1,890,016
199,507
14,159
2,103,682
At 31 December 2019
2,127,628
304,641
21,286
2,453,555
13
Fixed asset investments
Group
Company
2020
2019
2020
2019
Notes
£
£
£
£
Investments in subsidiaries
14
-
-
61,656
61,656
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
13
Fixed asset investments (continued)
Page 32
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 January 2020 and 31 December 2020
61,656
Carrying amount
At 31 December 2020
61,656
At 31 December 2019
61,656
14
Subsidiaries
Details of the company's subsidiaries at 31 December 2020 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
iSmash Canary Wharf Limited
United Kingdom
Leaseholder
Ordinary
100
iSmash Ken High Limited
United Kingdom
Leaseholder
Ordinary
100
iSmash Limited
United Kingdom
Leaseholder
Ordinary
100
15
Financial instruments
Group
Company
2020
2019
2020
2019
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
938,673
1,097,709
1,074,574
1,262,773
Carrying amount of financial liabilities
Measured at amortised cost
19,058,646
17,507,369
19,246,373
17,673,229
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
Page 33
16
Stocks
Group
Company
2020
2019
2020
2019
£
£
£
£
Finished goods and goods for resale
1,347,735
1,707,725
1,347,735
1,707,725
17
Debtors
Group
Company
2020
2019
2020
2019
Amounts falling due within one year:
£
£
£
£
Trade debtors
181,159
506,646
181,159
506,647
Unpaid share capital
-
111
111
Corporation tax recoverable
20,312
20,312
20,312
20,312
Other debtors
757,514
590,952
893,415
756,015
Prepayments and accrued income
4,601,791
5,005,430
4,601,791
4,988,680
5,560,776
6,123,451
5,696,677
6,271,765
18
Creditors: amounts falling due within one year
Group
Company
2020
2019
2020
2019
Notes
£
£
£
£
Bank loans and overdrafts
225
225
Other borrowings
6,750
13,500
6,750
13,500
Trade creditors
1,325,589
1,492,943
1,325,589
1,492,943
Amounts owed to group undertakings
16,741,234
9,304,071
16,741,234
9,304,071
Other taxation and social security
1,147,099
554,199
1,147,099
554,199
Government grants
20
31,500
-
31,500
Other creditors
9,896
415,241
213,303
596,781
Accruals and deferred income
974,952
757,875
959,497
742,420
20,237,245
12,538,054
20,424,972
12,703,914
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
Page 34
19
Creditors: amounts falling due after more than one year
Group
Company
2020
2019
2020
2019
£
£
£
£
Other creditors
-
5,523,514
5,523,514
The above amounts due to parent is in respect of a loan from Ismash Group. Interest is charged at 4% and it is due to be repaid in 2021.
20
Deferred grants
Group
Company
2020
2019
2020
2019
£
£
£
£
Arising from government grants
31,500
-
31,500
-
21
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
72,566
91,766
A
defined contribution pension scheme
is operated
for all qualifying employees.
The assets of the scheme are held separately from those of the group in an independently administered fund.
22
Share capital
Group and company
2020
2019
Ordinary share capital
£
£
Issued and fully paid
1,072,398 Ordinary share of £1 each
1,072,398
1,072,398
11,058 Ordinary B share of 1p each
111
111
1,072,509
1,072,509
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
Page 35
23
Operating lease commitments
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2020
2019
2020
2019
£
£
£
£
Within one year
4,147,453
2,546,476
1,539,918
1,605,243
Between two and five years
9,101,036
4,595,093
4,361,025
4,595,093
In over five years
5,050,836
4,041,940
2,525,418
4,041,940
18,299,325
11,183,509
8,426,361
10,242,276
24
Events after the reporting date
In September 2021, five investors subscribed for a total of 14,055 shares in iSmash Group Limited, the parent, with a total subscription monies of £14,117,909. A portion of the investment monies was received in the cash and the remaining value used to settle outstanding loans.
25
Related party transactions
Remuneration of key management personnel
The Director, COO and Finance Director are considered to be key management personnel. The total compensation of key management personnel during the period was £414,215 (2019: £458,333).
Other information
The company has taken advantage of the exemption in FRS102 from the requirement to disclose transactions with group companies on the grounds that consolidated financial statements are prepared by the ultimate parent company.
During the year to 31 December 2020, the company incurred advertising costs of £350,931 relating to the activities and spend carried out by Sky UK Limited on their behalf. At the year end, there is a prepayment in debtors of £4,174,069 that relates to prepaid advertising costs with Sky as part of the issue of iSmash Group Limited shares to Sky. Sky is a shareholder in UK Trading's parent, iSmash Group Limited, which wholly owns iSmash UK Trading Limited.
26
Directors' transactions
One director paid the company a lump sum of £11,077 in relation to a repayment of salary.
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
Page 36
27
Controlling party
The parent company of Ismash UK Trading Ltd is Ismash Group Ltd and its registered office is Geneva Place, Waterfront Drive, P.O Box 3469, Road Town, Tortola, British Virgin Islands.
There is no ultimate controlling party.
28
Restatement of 2019 financial statements
There was a £7m increase in the intercompany loan balance with iSmash UK Trading's parent in 2019. This movement should be classified in line with normal debt movement, and therefore has been moved from operating to financing cash flows.
2019 working capital movements included an increase of debtors of £4.5m. This related to prepaid services in exchange for equity within the parent, it was not an operational cash flow and therefore has been moved to within financing cash flows.
These changes have been made in both the group and company cash flows.
A total of £100,000 of prepaid marketing expenditure was utilised during the months of November and December 2019. This spend had not been included in the 2019 financial statements. Therefore a restatement journal has been posted to decrease prepayments and increase marketing spend by £100,000 in 2019.
A legal fee of £100,000 was incurred in 2019 as a result of the parent company recharging legal costs to Ismash UK Trading in the period to 31 December 2019.
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
Page 37
29
Cash generated from group operations
2020
2019 as restated
£
£
Loss for the year after tax
(3,228,439)
(2,256,500)
Adjustments for:
Finance costs
622,618
439,690
Amortisation and impairment of intangible assets
29,379
22,976
Depreciation and impairment of tangible fixed assets
484,318
471,350
Other gains and losses
3,619
310,394
Movements in working capital:
Decrease/(increase) in stocks
359,990
(458,154)
Decrease/(increase) in debtors
687,564
(253,269)
Increase in creditors
2,445,115
175,693
Increase in deferred income
31,500
-
Cash generated from/(absorbed by) operations
1,435,664
(1,547,820)
30
Cash generated from/(absorbed by) operations - company
2020
2019 as restated
£
£
Loss for the year after tax
(3,228,345)
(3,267,244)
Adjustments for:
Finance costs
622,618
439,690
Fair value (gain)/loss on investments
1,010,744
Amortisation and impairment of intangible assets
29,379
22,976
Depreciation and impairment of tangible fixed assets
449,944
436,975
Other gains and losses
3,619
310,394
Movements in working capital:
Decrease/(increase) in stocks
359,990
(458,154)
Decrease/(increase) in debtors
699,977
(225,435)
Increase in creditors
2,466,982
182,942
Increase in deferred income
31,500
-
Cash generated from/(absorbed by) operations
1,435,664
(1,547,112)
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
Page 38
31
Analysis of changes in net funds - group
1 January 2020
Cash flows
31 December 2020
£
£
£
Cash at bank and in hand
266,240
230,043
496,283
Bank overdrafts
(225)
-
(225)
266,015
230,043
496,058
Borrowings excluding overdrafts
(13,500)
6,750
(6,750)
252,515
236,793
489,308
32
Analysis of changes in net funds - company
1 January 2020
Cash flows
31 December 2020
£
£
£
Cash at bank and in hand
265,921
230,043
495,964
Borrowings excluding overdrafts
(13,500)
6,750
(6,750)
252,421
236,793
489,214
33
Prior period adjustment
Reconciliation of changes in equity - group
1 January
31 December
2019
2019
£
£
Equity as previously reported
(4,959,182)
(7,015,570)
Adjustments to prior year
Utilisation of prepaid marketing expenditure
-
(100,000)
Additional professional services cost
-
(100,000)
Equity as adjusted
(4,959,182)
(7,215,570)
iSmash UK Trading Limited
Notes to the financial statements (continued)
For the year ended 31 December 2020
33
Prior period adjustment (continued)
Page 39
Reconciliation of changes in loss for the previous financial period
2019
£
Loss as previously reported
(2,056,500)
Adjustments to prior year
Utilisation of prepaid marketing expenditure
(100,000)
Additional professional services cost
(100,000)
Loss as adjusted
(2,256,500)
Reconciliation of changes in equity - company
1 January
31 December
2019
2019
£
£
Equity as previously reported
(4,041,007)
(7,108,140)
Adjustments to prior year
Utilisation of prepaid marketing expenditure
-
(100,000)
Additional professional services cost
-
(100,000)
Equity as adjusted
(4,041,007)
(7,308,140)
Reconciliation of changes in loss for the previous financial period
2019
£
Loss as previously reported
(3,067,244)
Adjustments to prior year
Utilisation of prepaid marketing expenditure
(100,000)
Additional professional services cost
(100,000)
Loss as adjusted
(3,267,244)
2020-12-31
2020-01-01
false
CCH Software
CCH Accounts Production 2021.300
Julian Shovlin
Dermot O'rourke
Richard Walker
Fiona Hornsby
Susanna Winkler
Christopher Murton
Carli Farmer
Edward Fry
Elizabeth Wynn
Max Price
09347088
2020-01-01
2020-12-31
09347088
bus:Director1
2020-01-01
2020-12-31
09347088
bus:Director2
2020-01-01
2020-12-31
09347088
bus:Director3
2020-01-01
2020-12-31
09347088
bus:Director4
2020-01-01
2020-12-31
09347088
bus:Director6
2020-01-01
2020-12-31
09347088
bus:Director9
2020-01-01
2020-12-31
09347088
bus:Director10
2020-01-01
2020-12-31
09347088
bus:Director5
2020-01-01
2020-12-31
09347088
bus:Director7
2020-01-01
2020-12-31
09347088
bus:Director8
2020-01-01
2020-12-31
09347088
bus:Consolidated
2020-12-31
09347088
2020-12-31
09347088
core:OtherResidualIntangibleAssets
2020-12-31
09347088
core:OtherResidualIntangibleAssets
2019-12-31
09347088
core:ComputerSoftware
2020-12-31
09347088
core:ComputerSoftware
2019-12-31
09347088
2019-12-31
09347088
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2020-12-31
09347088
core:FurnitureFittings
2020-12-31
09347088
core:ComputerEquipment
2020-12-31
09347088
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2019-12-31
09347088
core:FurnitureFittings
2019-12-31
09347088
core:ComputerEquipment
2019-12-31
09347088
core:ShareCapital
2020-12-31
09347088
core:ShareCapital
2019-12-31
09347088
2019-01-01
2019-12-31
09347088
core:ShareCapital
2019-01-01
2019-12-31
09347088
1
2020-01-01
2020-12-31
09347088
1
2019-01-01
2019-12-31
09347088
2018-12-31
09347088
core:IntangibleAssetsOtherThanGoodwill
2020-01-01
2020-12-31
09347088
core:LandBuildings
core:LongLeaseholdAssets
2020-01-01
2020-12-31
09347088
core:FurnitureFittings
2020-01-01
2020-12-31
09347088
core:ComputerEquipment
2020-01-01
2020-12-31
09347088
core:ComputerSoftware
2019-12-31
09347088
core:ComputerSoftware
core:ExternallyAcquiredIntangibleAssets
2020-01-01
2020-12-31
09347088
core:ComputerSoftware
2020-01-01
2020-12-31
09347088
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2019-12-31
09347088
core:FurnitureFittings
2019-12-31
09347088
core:ComputerEquipment
2019-12-31
09347088
2019-12-31
09347088
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2020-01-01
2020-12-31
09347088
core:Subsidiary1
2020-01-01
2020-12-31
09347088
core:Subsidiary2
2020-01-01
2020-12-31
09347088
core:Subsidiary3
2020-01-01
2020-12-31
09347088
core:Subsidiary1
1
2020-01-01
2020-12-31
09347088
core:Subsidiary2
2
2020-01-01
2020-12-31
09347088
core:Subsidiary3
3
2020-01-01
2020-12-31
09347088
core:CurrentFinancialInstruments
2020-12-31
09347088
core:CurrentFinancialInstruments
2019-12-31
09347088
core:Non-currentFinancialInstruments
1
2020-12-31
09347088
core:Non-currentFinancialInstruments
1
2019-12-31
09347088
bus:PrivateLimitedCompanyLtd
2020-01-01
2020-12-31
09347088
bus:FRS102
2020-01-01
2020-12-31
09347088
bus:Audited
2020-01-01
2020-12-31
09347088
bus:ConsolidatedGroupCompanyAccounts
2020-01-01
2020-12-31
09347088
bus:FullAccounts
2020-01-01
2020-12-31
xbrli:pure
xbrli:shares
iso4217:GBP