Registration number:
for the Year Ended
Arabian Racing Organisation Limited
Contents
Balance Sheet |
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Notes to the Unaudited Financial Statements |
Arabian Racing Organisation Limited
(Registration number: 03902941)
Balance Sheet as at 31 December 2020
Note |
2020 |
2019 |
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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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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net liabilities |
( |
( |
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Capital and reserves |
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Profit and loss account |
(96,787) |
(101,019) |
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Shareholders' deficit |
(96,787) |
(101,019) |
For the financial year ending 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
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
.........................................
Company secretary and director
Arabian Racing Organisation Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020
General information |
The Arabian Racing Organisation Limited is a company limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £10 towards the assets of the company in the event of liquidation.
The address of its registered office is:
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.
Arabian Racing Organisation Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020
Going concern
Throughout the year ended 31 December 2018 the company experienced very difficult trading conditions and a financial loss of £115,554 was sustained.
Against this background the Directors undertook an extensive financial review which resulted in a number of operational changes designed to ensure that the company was placed on a sound financial footing for the 2019 season and beyond.
These changes have been successful in that the company generated a profit of £35,175 in the year ended 31 December 2019, which increased the net current assets to £108,950.
This continued into the year ended 31 December 2020 with the company generating profits of £4,232, which increased the net current assets to £113,182. The profit of £4,232 is lower than had originally been forecast due to the effects of the Covid-19 pandemic.
Based upon the effect of the operational changes, the 2021 financial year would have been expected to continue the improved trading position. However, the Covid-19 pandemic has inevitably affected the company's plans for the current year and the associated racing programme. It is currently impossible to predict how long the effect of the pandemic will last or to quantify the financial implications for the company and the sport of Arabian Racing generally.
The board has therefore undertaken a comprehensive operational and associated financial planning review based upon various scenarios.
Based on the results of the review the board is satisfied that the company will have sufficient financial resources to continue to operate throughout 2021 and 2022 under all likely scenarios considered.
On that basis, the Directors have a reasonable expectation that the company will continue to have sufficient financial resources available to enable it to meet its liabilities as they fall due for the foreseeable future, being not less than one year from the date on which these financial statements were signed.
These financial statements have therefore been drawn up on the going concern basis, which assumes that this will be the case.
As there is no intention or expectation that the company will be wound-up within the foreseeable future, the Perpetual Debentures have been treated as a long-term liability (see note 6).
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for sponsorship income, race day income, entries and declarations, registrations and other services provided in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
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.
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 |
Office equipment |
33% straight line |
Arabian Racing Organisation Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020
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.
Trade 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.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
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 the profit and loss account on a straight-line basis over the period of the lease.
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 directors) during the year, was
Arabian Racing Organisation Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020
Tangible assets |
Office equipment |
Total |
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Cost or valuation |
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At 1 January 2020 |
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At 31 December 2020 |
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Depreciation |
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At 1 January 2020 |
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At 31 December 2020 |
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Carrying amount |
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At 31 December 2020 |
- |
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Debtors |
2020 |
2019 |
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Trade debtors |
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Prepayments |
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Other debtors |
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Arabian Racing Organisation Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020
Creditors |
Creditors: amounts falling due within one year
2020 |
2019 |
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Due within one year |
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Trade creditors |
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Taxation and social security |
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Accruals and income received in advance |
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Due after one year |
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Debenture loans |
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Creditors: amounts falling due after more than one year
Note |
2020 |
2019 |
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Due after one year |
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Debenture loans |
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The debentures are unsecured, perpetual and interest free.
The debenture loans are undated, have no final maturity date and will only become payable upon the winding up of the company and on the condition that the claims of all other creditors have been satisfied, paid or provided for in full. The directors have no reason to expect that the company will be wound up within the foreseeable future and the non convertible debenture loans have therefore been treated as a long term liability.
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £