Registration number:
Reality Finance Solutions Limited
for the Year Ended 31 August 2019
Reality Finance Solutions Limited
Contents
Company Information |
|
Balance Sheet |
|
Notes to the Financial Statements |
Reality Finance Solutions Limited
Company Information
Directors |
J Leslie J J Cashmore |
Company secretary |
J Leslie |
Registered office |
|
Accountants |
|
Reality Finance Solutions Limited
(Registration number: 03946834)
Balance Sheet as at 31 August 2019
Note |
2019 |
2018 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
1,000 |
1,000 |
|
Profit and loss account |
803,690 |
526,615 |
|
Total equity |
804,690 |
527,615 |
For the financial year ending 31 August 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
|
• |
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.
Reality Finance Solutions Limited
(Registration number: 03946834)
Balance Sheet as at 31 August 2019
Approved and authorised by the
J Leslie
Company secretary and director
Reality Finance Solutions Limited
Notes to the Financial Statements for the Year Ended 31 August 2019
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is and principal place of business is:
Accounting policies |
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 where certain items are shown at fair value.
Going concern
We have paid particular attention to the likely effects on the business of the current COVID-19 outbreak and we remain confident that sufficient funding is in place and that the company has adequate resources to enable it to continue as a going concern for the foreseeable future
Revenue recognition
Turnover represents commission invoiced during the year, secondary income and equipment leasing income, exclusive of value added tax. Turnover is recognised upon activation of the lease which occurs when commission is first received.
Equipment leasing income is recognised on a systematic and rational basis and is calculated as a constant periodic return on the lessor's net investment.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Reality Finance Solutions Limited
Notes to the Financial Statements for the Year Ended 31 August 2019
2 |
Accounting policies (continued) |
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
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.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
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 provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Asset class |
Depreciation method and rate |
Short leasehold |
over the lease term |
Fixtures and fittings |
15% on reducing balance |
Office and computer equipment |
33% on reducing balance |
Intangible assets
Intangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life. The estimated useful life of four years has been deemed a reasonable time before the software would need updating.
Asset class |
Amortisation method and rate |
Software costs |
25% straight line |
Reality Finance Solutions Limited
Notes to the Financial Statements for the Year Ended 31 August 2019
2 |
Accounting policies (continued) |
Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.
The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.
Lessor accounting for finance leases
Amounts due from lessees under finance leases are recognised as a debtor at the amount of the net investment in the lease after making provisions for items such as bad and doubtful rentals receivable.
The total gross earnings under finance leases are recognised on a systematic basis as a constant periodic rate of return on the lessor's net investment.
Defined contribution pension obligation
The company operates a defined contribution pension scheme and also contributes to individuals' personal pension schemes. Contributions payable to the pension schemes are charged to the profit and loss account in the period to which they relate.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Exceptional items |
During the year ended 31 August 2019 the company incurred costs totalling £60,792 (2018: £217,829) in respect of compensation to lenders and customers.
During the year ended 31 August 2019 the company incurred costs totalling £Nil (2018: £75,018) in relation to re-structuring of business operations at its Leeds office.
Reality Finance Solutions Limited
Notes to the Financial Statements for the Year Ended 31 August 2019
Intangible assets |
Software costs |
Total |
|
Cost or valuation |
||
At 1 September 2018 |
|
|
At 31 August 2019 |
|
|
Amortisation |
||
At 1 September 2018 |
|
|
Amortisation charge |
|
|
At 31 August 2019 |
|
|
Carrying amount |
||
At 31 August 2019 |
|
|
At 31 August 2018 |
|
|
Reality Finance Solutions Limited
Notes to the Financial Statements for the Year Ended 31 August 2019
Tangible assets |
Short leasehold |
Fixtures and fittings |
Office and computer equipment |
Total |
|
Cost or valuation |
||||
At 1 September 2018 |
|
|
|
|
Additions |
- |
- |
|
|
Disposals |
- |
- |
( |
( |
At 31 August 2019 |
|
|
|
|
Depreciation |
||||
At 1 September 2018 |
|
|
|
|
Charge for the year |
- |
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
At 31 August 2019 |
|
|
|
|
Carrying amount |
||||
At 31 August 2019 |
- |
|
|
|
At 31 August 2018 |
- |
|
|
|
Debtors |
2019 |
2018 |
|
Trade debtors |
|
|
Deferred tax asset |
|
- |
Prepayments and accrued income |
|
|
Finance lease receivables |
|
|
Other debtors |
- |
500 |
Total current trade and other debtors |
|
|
Details of non-current trade and other debtors
£781,719 (2018: £865,679) of amounts receivable in respect of finance leases is classified as non current.
Assets totalling £1,034,345 (2018: £1,365,997) were purchased during the year for the purpose of letting under finance leases. The net investment in finance leases outstanding at 31 August 2019 is £1,737,633 (2018: £1,849,261).
Reality Finance Solutions Limited
Notes to the Financial Statements for the Year Ended 31 August 2019
Creditors |
2019 |
2018 |
|
Due within one year |
||
Loans and borrowings |
|
|
Trade creditors |
|
|
Taxation and social security |
|
|
Accruals and deferred income |
|
|
Other creditors |
|
|
Corporation tax |
57,291 |
157,941 |
|
|
2019 |
2018 |
|
Due after one year |
||
Other loans |
|
|
Other loans totalling £1,130,292 (2018: £1,285,141) are secured by a fixed and floating charge over the assets of the company and by personal guarantees from the directors, J Leslie and J J Cashmore.
Share capital |
Allotted, called up and fully paid shares
2019 |
2018 |
|||
No. |
£ |
No. |
£ |
|
Ordinary shares of £1 each |
1,000 |
1,000 |
1,000 |
1,000 |
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2019 |
2018 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Reality Finance Solutions Limited
Notes to the Financial Statements for the Year Ended 31 August 2019
Related party transactions |
Transactions with directors |
2019 |
At 1 September 2018 |
Repayments by director |
At 31 August 2019 |
J J Cashmore |
|||
Director's loan account |
|
( |
- |
2018 |
At 1 September 2017 |
At 31 August 2018 |
J J Cashmore |
||
Director's loan account |
|
|
Income and receivables from related parties
2019 |
Other related parties |
Sale of goods |
|
Amounts receivable from related party |
|
2018 |
Other related parties |
Sale of goods |
|
Amounts receivable from related party |
|
Expenditure with and payables to related parties
2019 |
Key management |
Other related parties |
Rendering of services |
- |
|
Amounts payable to related party |
|
- |
2018 |
Key management |
Other related parties |
Rendering of services |
- |
|
Amounts payable to related party |
|
- |
Reality Finance Solutions Limited
Notes to the Financial Statements for the Year Ended 31 August 2019
13 Tax charged/(credited) in the income statement
2019 |
2018 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
( |
52,899 |
157,940 |
|
Deferred taxation |
||
Arising from TWDVs on assets held for leasing |
( |
- |
Tax (receipt)/expense in the income statement |
( |
|
Deferred tax asset |
Deferred tax £ |
||||
At 31 August 2018 |
- |
|||
Increase in provision |
281,111 |
|||
At 31 August 2019 |
281,111 |