Registration number:
Brilliant In Excellence (UK) Limited
for the Year Ended 31 December 2021
Brilliant In Excellence (UK) Limited
Contents
Balance Sheet |
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Notes to the Financial Statements |
Brilliant In Excellence (UK) Limited
(Registration number: 10013030)
Balance Sheet as at 31 December 2021
Note |
2021 |
2020 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Net liabilities |
( |
( |
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Capital and reserves |
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Called up share capital |
1 |
1 |
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Profit and loss account |
(3,240,283) |
(3,730,774) |
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Shareholders' deficit |
(3,240,282) |
(3,730,773) |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
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Brilliant In Excellence (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
United Kingdom
The principal place of business is:
Unit 1500B
Silverstone Park
Silverstone
Northants
NN12 8FU
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are presented in Sterling (£) and rounded to the nearest £.
Going concern
The accounts are prepared on a going concern basis. The company is 100% owned by Brilliant In Excellence Co. LTD, which operates the company as a stand-alone business, with the majority of its income secured through a commercial agreement. Funds are received in three payments per year from SHANGHAI LISHENG RACING CO. LTD, with the current agreement running until mid 2024.
Audit report
Material uncertainty relating to going concern
We draw attention to note 2 in the financial statements regarding going concern and note 7 regarding contingent liability. After the year end, as detailed in note 10, the company entered into a commercial agreement with Shanghai Lisheng Racing Co. Ltd which includes payments up to February 2024. Although the agreement provides sufficient funding in principle it is a new partner for the company and as such there is a level of uncertainty until payments have been received. In addition, the company owes £4,663,602 to related companies in respect of loans repayable in one year. These conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
The name of the Senior Statutory Auditor who signed the audit report on
Brilliant In Excellence (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Judgements
In preparing the financial statements, no judgements have been made in the process of applying the company's accounting policies that have had a significant effect on the amounts recognised in the financial statements, uncertainty are addressed below |
Key sources of estimation uncertainty
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have the greatest level of uncertainty are addressed below:.
(i) Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. The carrying amount is £1,035,375 (2020 -£164,278).
(ii) Sponsorship income recognition
As noted in the revenue recognition policy income from the main sponsorship contract is recognised based on completion of races.
(iii) R&D tax credit due
The company makes a best estimate of R&D tax credit due for qualifying work done in the period. This assessment is reviewed by a tax accountant and included as a debtor due to the previously successful claims. The carrying amount is £1,165,688 (2020 -£1,283,073).
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable net of discounts and value addes taxes.
The income for continuing operations was primarily sponsorship. The primary contract is for $10m per season for 3 seasons starting in season 6 (2019/20). The income is recognised by race. Other sponsorship income is recognised on invoicing.
Government grants
Government grants in relation to expenditure are credited when the expenditure is charged to profit and loss.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current tax payable.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Brilliant In Excellence (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Leasehold improvements |
Straight line over the useful life |
Furniture, fittings & equipment |
Straight line over the useful life |
IT equipment |
Straight line over the useful life |
Motor vehicles |
Straight line over the useful life |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Staff numbers |
The average number of persons employed by the company (including the director) during the year, was
Brilliant In Excellence (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Tangible assets |
Short leasehold land and buildings |
IT equipment |
Plant and machinery |
Office equipment |
Motor vehicles |
Total |
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Cost or valuation |
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At 1 January 2021 |
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Additions |
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- |
- |
- |
- |
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Disposals |
( |
- |
( |
- |
- |
( |
At 31 December 2021 |
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Depreciation |
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At 1 January 2021 |
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Charge for the year |
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Eliminated on disposal |
( |
- |
( |
- |
- |
( |
At 31 December 2021 |
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Carrying amount |
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At 31 December 2021 |
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- |
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At 31 December 2020 |
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Included within the net book value of land and buildings above is £219,523 (2020 - £26,751) in respect of short leasehold land and buildings.
Brilliant In Excellence (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Debtors |
2021 |
2020 |
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Trade debtors |
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Prepayments |
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Other debtors |
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Creditors |
Creditors: amounts falling due within one year
2021 |
2020 |
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Due within one year |
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Trade creditors |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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Taxation and social security |
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Other creditors |
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Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
Operating lease commitments
The total amount of financial commitments not included in the balance sheet is £
Capital commitments
Contracts for future expenditure not provided in the financial statements - race car costs.
The total amount contracted for but not provided in the financial statements was £1,453,135 (2020 - £Nil).
Contingent liabilities
A legal dispute arose with one of the company's suppliers due to inadequate provision of goods in accordance with a supply contract. The supplier requested a settlement of €2.6m which was in full and final settlement but this offer lapsed. At 31 December 2021 a balance relating to this supplier of £1.54m was held in trade creditors and no further progress has been made. If a settlement was reached any liability would be split equally between the company and NIO Performance Engineering Limited. The company is holding £900,000 on behalf of NIO Performance Engineering Limited relating to this claim. If the claim is unsuccessful this money will be repaid to NIO Performance Engineering Limited.
Related party transactions |
Summary of transactions with parent
Brilliant In Excellence (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate controlling party is
Non adjusting events after the financial period |
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