RLA Capital Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, Blackfriars House, Parsonage, Manchester, M3 2JA.
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.
These financial statements for the year ended 31 March 2018 are the first financial statements of RLA Capital Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 April 2016. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
These financial statements cover the period 1 April 2017 to 31 March 2018 which represents a 365 day period.
The previous period's financial statements covered the period of 27 April 2016 to 31 March 2017 which represents a 338 day period. This is shorter than one year due to it being the first year of trading. As this period is less than one year, the comparative amounts in the financial statements and related notes are not entirely comparable.
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 credited or charged to profit or loss .
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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.
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.
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.
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. 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.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Prior period adjustment
The financial statements incorporate a prior period adjustment to restate the comparative figures as a result of a number of fundamental errors including the misallocation of material bank transactions in the previous period. Full details of the restatement can be found in the notes to these financial statements.
In the application of the company’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.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
There have been no critical judgements, estimates and assumptions made in the preparation of these financial statements.
The average monthly number of persons (including directors) employed by the company during the year was 5 (2017 - 3).
A change to the UK corporation tax rate was announced in the Chancellor's Budget on 16 March 2016. The change announced is to reduce the main rate of corporation tax incrementally from 1 April 2017 to a rate of 17% which will apply from 1 April 2020 onwards.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
At the balance sheet date, 150 of the 150 issued shares remain unpaid.
During the year, the company issued 50 ordinary shares at a nominal value of £1.
At the balance sheet date, the company has entered into an operating lease for the provision of office space.
The office space is the location from which the company carries out its business. Per the rental agreement, the company is to pay £725 per month for this office space and there is no specified end date for this agreement.
During the year, the company operated loan accounts with its directors. The balances on these loan accounts are included within other creditors.
At the balance sheet date, L Shearsmith was owed £12,583 (2017: £nil) from the company. During the year, the director introduced £155,600 to the company and withdrew £143,017 from the company. This loan is repayable on demand and no interest has been charged on the balance.
At the balance sheet date, R McGuckin was owed £nil (2017: £19,594 owed to the company) from the company. During the year, the director introduced £155,608 to the company and withdrew £136,013 from the company. This loan is repayable on demand and no interest has been charged on the balance.
At the balance sheet date, A Morris was owed £46,372 (2017: £19,594 owed to the company) from the company. During the year, the director introduced £217,328 to the company and withdrew £151,362 from the company. This loan is repayable on demand and no interest has been charged on the balance.
The company is under the control of the directors by virtue of their 100% holding of the company's share capital.
The restatement has had the following impact upon the financial statements:
Debtors due within one year have increased to £39,287 having previously been stated as being £100.
The bank and cash balance has increased to £454 having previously been stated as being £nil.
The net assets of the company now total £39,741 having previously been stated as being £100.
The total equity of the company has increased to £39,741 having previously been stated as being £100.
The profit and loss account of the company is now showing a profit of £39,641 having previously been stated as being £nil. This is due to turnover increasing to £42,188 (previously £nil) and administrative expenses increasing to £2,547 (previously £nil).