Company Registration No. 08778948 (England and Wales)
THEBOOTBUDDY LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
PAGES FOR FILING WITH REGISTRAR
THEBOOTBUDDY LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
THEBOOTBUDDY LTD
BALANCE SHEET
AS AT
31 DECEMBER 2020
31 December 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
3
120,461
131,967
Tangible assets
4
73,364
62,174
193,825
194,141
Current assets
Stocks
216,853
80,028
Debtors
5
178,509
21,762
Cash at bank and in hand
729,902
749,262
1,125,264
851,052
Creditors: amounts falling due within one year
6
(810,539)
(642,320)
Net current assets
314,725
208,732
Total assets less current liabilities
508,550
402,873
Provisions for liabilities
(13,939)
(10,570)
Net assets
494,611
392,303
Capital and reserves
Called up share capital
200
200
Share premium account
59,940
59,940
Profit and loss reserves
434,471
332,163
Total equity
494,611
392,303
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
THEBOOTBUDDY LTD
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2020
31 December 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 31 December 2021 and are signed on its behalf by:
R K Dhillon
Director
Company Registration No. 08778948
THEBOOTBUDDY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 3 -
1
Accounting policies
Company information
Thebootbuddy Ltd is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
39 Falcon Road, London, SW11 2PH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors have considered the effect of the Covid-19 outbreak. The outbreak has caused little disruption to the company’s business to date.
true
Although the government imposed lockdowns did cause some disruption to the business, as a result of temporary abandonment of sporting activities, the effect of this was short term and the company continues to be profitable. Post year end sales have returned to pre-Covid trading.
The directors consider it unlikely that a prolonged outbreak will cause significant disruption. Accordingly, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT
.
1.4
Intangible fixed assets other than goodwill
I
ntellectual
Property and Trademarks are
capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the company are recognised as intangible assets when the following criteria are met:
- it is technically feasible to complete the software product so that it will be available for use;
- management intends to complete the software product and use or sell it;
- there is an ability to use or sell the software product;
- it can be demonstrated how the software product will generate probable future economic benefits;
- adequate technical, financial and other resources to complete the development and to use or sell the software product available; and
- the expenditure attributable to the software product during its development can be reliably measured.
Directly attributable costs that are capitalised as part of the software product include the software development consultancy cost.
Capitalised development cost are recorded as intangible assets and amortised from the point at which the asset is ready for use over their estimated useful economic life.
THEBOOTBUDDY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 4 -
Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
IP & Trade Marks
Over a period of 10 years
Website Development cost
25% Reducing balance
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Tooling Equipment
20% Reducing balance
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss
.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell
. Cost comprises of direct cost only.
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.
1.8
Cash and cash equivalents
Cash at bank and in hand
are basic financial assets
and
include cash in hand and deposits held at call with banks.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
THEBOOTBUDDY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors
are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs
.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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
s
asset are consumed.
THEBOOTBUDDY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 6 -
1.15
Government grants
Government grants, which includes those relating to the Coronavirus Job Retention Scheme (CJRS) are recognised at the fair
value of the asset received or receivable when there is reasonable assurance that the grant conditions
will be met and the
grants will be received.
For CJRS grants, as this scheme involves a transfer of resources from government to the company, it meets the
definition of a
government grant. The scheme is designed to compensate for staff costs, so amounts received or receivable are recognised in
the income statement as part of other operating income over the same period as the costs to which they relate. Government
grants are accounted for under the accrual model.
Government grants relating to council rates support are recognised at fair value and are shown in the income statement as part of other operating income. The amount is recognised when received.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
4
2
3
Intangible fixed assets
IP & Trade Marks
Website Development cost
Total
£
£
£
Cost
At 1 January 2020
199,772
10,500
210,272
Additions - internally developed
11,433
11,433
At 31 December 2020
211,205
10,500
221,705
Amortisation and impairment
At 1 January 2020
76,118
2,187
78,305
Amortisation charged for the year
20,861
2,078
22,939
At 31 December 2020
96,979
4,265
101,244
Carrying amount
At 31 December 2020
114,226
6,235
120,461
At 31 December 2019
123,654
8,313
131,967
THEBOOTBUDDY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 7 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2020
136,744
Additions
24,164
At 31 December 2020
160,908
Depreciation and impairment
At 1 January 2020
74,570
Depreciation charged in the year
12,974
At 31 December 2020
87,544
Carrying amount
At 31 December 2020
73,364
At 31 December 2019
62,174
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
135,096
15,512
Other debtors
35,388
6,081
Prepayments
8,025
169
178,509
21,762
6
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
190,392
114,731
Corporation tax
35,212
26,755
Other taxation and social security
216,316
227,203
Deferred income
32,125
Other creditors
276,373
266,982
Accruals and deferred income
60,121
6,649
810,539
642,320
Included in other creditors is an amount of £231,073 (2019: £246,329) due to
a
director of the company and it is payable on demand.
THEBOOTBUDDY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 8 -
7
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
Within one year
12,758
8,100
12,758
8,100